Stryker attracts second bullish play
Stryker attracted bullish option activity on Friday for the second time in a week.
optionMONSTER's Heat Seeker system shows that about 3,300 March 100 calls were bought for $0.30 to $0.60 in the session. Volume was triple the strike's previous open interest, indicating that new positions were established.
These long calls lock in the price where investors can buy a stock, which lets them position for a rally with limited capital. That can be safer than purchasing shares directly because only the cost of the options can be lost on a pullback. The calls can be sold anytime before they expire but will lose value if the stock falls. (See our Education section)
Friday's call buying follows a June bullish combination trade reported on our InsideOptions Pro service on Feb. 9 .
SYK rose 1.22 percent to $94.51 on Friday. The company, which makes replacement joints and other medical products, is trying to break out of an increasingly narrow range that has been in place since mid-December.
Total option volume in SYK on Friday was quadruple its daily average for the last month. Overall calls outnumbered puts by 5 to 1.
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