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Call buyers score again in $MDT
Bullish option traders have tripled their money in Medtronic. On Aug. 3, Investitute’s market scanners identified the purchase of 4,000 September $92.50 calls in one print for $1.37 as part of a bullish roll with shares at $90.30. This was clearly a new position, as volume was above the strike’s open interest of 3,117 contracts. […]
Bullish option traders have tripled their money in Medtronic.
On Aug. 3, Investitute’s market scanners identified the purchase of 4,000 September $92.50 calls in one print for $1.37 as part of a bullish roll with shares at $90.30. This was clearly a new position, as volume was above the strike’s open interest of 3,117 contracts.
Those calls traded for $4.40 this morning, more than 3 times their purchase price. The stock rose 4.43% in the same time frame, illustrating the kind of leverage that can be achieved with options. It is the second winning trade in Medtronic posted on Investitute in as many weeks.
Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.
MDT climbed to $96.76 this morning but pulled back to close at $96.41, off 0.41% on the session. The medical-device maker reported strong quarterly results on Aug. 21.