Options Trading News

February 28, 2013  Thu 1:47 AM CT

Endo Health Solutions reports earnings after the bell today, and the bulls are stepping in.

optionMONSTER's Heat Seeker monitoring program detected the purchase of about 10,000 April 30 calls for $1.78 and the sale of a matching number of April 35 calls for $0.33. Volume exceeded the previous open interest in each strike, indicating that these are new positions.

The trade resulted in a cost of $1.45 and will earn a maximum profit of 245 percent if the drug maker closes at or above $35 on expiration. It's known as a bullish call spread because it leverages a move between two prices, in this case $30 and $35. (See our Education section)

ENDP rose 3.29 percent to $30.80 yesterday. It is down 19 percent in the last year but has been working its way higher since early January.

Total option volume in the name was 6 times its daily average in the session, according to the Heat Seeker. Calls outnumbered puts by more than 23 to 1.
Share this article with your friends

Related Stories


Endo seen holding recent support

September 11, 2015

The Dublin-based pharmaceutical and medical-device company has been range-bound since plunging with the broader market last month.


Premium Services

Archived Webinar

Education & Strategy

The covered call and unhedged risk

I have written a few things on the Covered Call Strategy over the last two weeks. Please understand that those two previous articles plus this one do not constitute a proper, fully in-depth lesson on the Covered Call Strategy like we have in our classes at Option Monster Education. I have picked out a few topics that I believe were worth noting and today I am going to add the final one.

View more education articles »