HCA has surged in recent months, and traders are betting on more gains by the end of next week.
optionMONSTER's monitoring system detected the purchase of more than 2,000 April 80 calls mostly for $0.90 yesterday. Volume was more than 4 times the open interest in the strike, indicating that these are new positions, and follows a bullish call roll in September contracts on March 4.
Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)
HCA fell 0.62 percent to $78.24 yesterday but is up 16 percent in the last three months. The health-care service company reported bullish results on Jan. 28 and is expected to announce its next quarterly numbers on May 3.
Overall option volume was about average in HCA yesterday. Calls outnumbered puts by a bullish 9-to-1 ratio.
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