Bulls come back to Thermo Fisher
Mike Yamamoto | firstname.lastname@example.org
optionMONSTER's Heat Seeker system detected the purchase of 2,000 April 75 calls on Friday, led by a print of 1,660 that went for $1.42. The volume was 15 times higher than the strike's open interest of just 133 contracts before the session began, clearly showing that this is fresh buying.
TMO finished Friday up 1.19 percent at $72.95. The maker of laboratory-testing equipment hit an all-time intraday high of $75.79 on Feb. 1 after reporting fourth-quarter results and had been hovering near that level until pulling back with the rest of the market in last week's selloff.
Friday's long calls, which lock in the price where the stock can be bought, are betting that TMO will gain roughly 5 percent or more by mid-April. Those options could be sold for a profit earlier if they rise in value with any rally before then, but they will expire worthless if shares remain below the $75 strike price. (See our Education section)
The call buying made up the bulk of TMO's 2,700 total options on Friday, which was 55 percent higher than its average daily volume for the last month. Only 240 puts changed hands, a reflection of the session's bullish sentiment.
The trade follows a bullish call roll from the March 75 to March 80 contracts last Tuesday.