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Hologic bulls come back for more

Mike Yamamoto (mike.yamamoto@optionmonster.com)

Hologic saw upside action two weeks ago, and the bulls came back yesterday.

About 4,500 November 22 calls were purchased for $0.65 to $0.90, according to optionMONSTER's Heat Seeker tracking system. Open interest in the strike was just 145 contracts before the trades appeared, showing that this is fresh buying.

These long calls lock in the price where the stock can be purchased in the next five weeks no matter how far it might climb. But the contracts will expire worthless if the shares remain below $22 through mid-November. (See our Education section)

HOLX rose 4.16 percent to $21.51 yesterday and is back above its 100-day moving average. The medical-device maker fell sharply after presenting at a Morgan Stanley conference on Sept. 10, and it is now trying to break out of a tight range in place for the last month.

Total option volume in the name topped 9,900 yesterday, almost 6 times its daily average for the last month. Of those contracts, fewer than 1,500 were puts.

Yesterday's bullish action follows buying in the March 22 calls on Sept. 25 .

(A version of this post appeared on InsideOptions Pro yesterday.)

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