Bulls not done with Cardinal Health
Cardinal Health has been fighting back from a major drop in March, and the bulls aren't done yet.
optionMONSTER's Heat Seeker monitoring system detected the purchase of some 3,300 January 50 calls, with premiums rising from $1.45 to $1.50. Volume was more than 6 times previous open interest at the strike, indicating new money was put to work on the long side.
Long calls lock in the price where shares can be purchased in the slow-moving pharmacy-benefits company. Should it continue to climb they stand to generate significant leverage, while if it drops they will limit potential losses. (See our Education section)
CAH is up 0.72 percent to $47.34 in morning trading and is setting a new 52-week high. It gapped lower on March 19 after losing a $20 billion contract with Walgreen but found support at its 200-day moving average and has been rebounding since. It also was flagged as a bullish pullback on our researchLAB momentum screeners .
Total option volume is triple the daily average in the name so far today, with calls outnumbering puts by almost 60 to 1.
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