Bulls like Bruker before earnings
Mike Yamamoto | firstname.lastname@example.org
More than 3,900 March 22.50 calls were bought yesterday for $1.15 to $1.25, according to optionMONSTER's Heat Seeker tracking system. These are clearly new positions, as open interest in the strike was a mere 85 contracts before the trades appeared.
These long calls lock in the price where the stock can be bought through mid-March no matter how far it might climb. They could be sold earlier if premiums rise with a rally before then, but the contracts will expire worthless if shares remain below $22.50. (See our Education section)
BRKR rose 1.05 percent to $20.70 yesterday. The stock pulled back after hitting a two-year high of $21.33 early this month but has been trading sideways since then, tracking its 50-day moving average.
The company, which makes scientific instruments and imaging systems, is scheduled to release third-quarter results tomorrow before the market opens.
Total option volume in the name topped 4,200 contracts yesterday, 29 times its daily average for the last month. Overall calls outnumbered puts by more than 15 to 1, a reflection of the session's bullish sentiment.