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Bulls like Omnicare before earnings

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Omnicare is attracting bullish open activity ahead of the pharmaceutical-service company's earnings report next week.

optionMONSTER's Heat Seeker tracking system shows that 1,185 December 37 calls traded in a strong buying pattern, almost all of them going for $0.50. Open interest in the strike was just 215 contracts at the beginning of the day, so these are new positions.

OCR rose 3.61 percent yesterday to close at $34.17 as its 50-day moving average crossed above the 200-day line. Overall option volume was 13 times its daily average yesterday, with calls outnumbering puts by more than 2 to 1.

Yesterday's call buyers are looking for the stock to gain at least 10 percent by expiration in mid-December. The company is scheduled to report third-quarter results before the market opens on Oct. 31. (See our Education section)

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