Market News

January 10, 2017  Tue 8:10 AM CT

A trader is looking for gains in Aetna in the next several days.

Our scanners detected the purchase of 6,000 January 135 calls for $0.83 and the sale of 6,000 January 137 calls for $0.58. This appears to be a bullish vertical spread.

This strategy is looking for AET to rally above $135 by expiration at the end of next week. The sale of the higher-strike contracts reduces the cost of the long calls but limits potential gains, as the trader will be obligated to sell shares if they rise above $137. (See our Education section)

AET fell 0.88 percent to $124.26 yesterday but is up 9 percent in the last three months. The health-care benefits provider reported bearish results on Oct. 27 and is scheduled to announce its next quarterly numbers in pre-market hours on Jan. 31.

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