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May 16, 2013  Thu 4:14 AM CT

Sigma-Aldrich is already at all-time highs, but some traders apparently believe that the life-sciences and technology company will reach even more record levels.

More than 1,700 July 85 calls traded in a strong buying pattern yesterday as premiums more than doubled from $0.45 to $1.05, according to optionMONSTER's Heat Seeker system. The volume was well above the strike's open interest of just 108 contracts before the session began, indicating new activity.

SIAL rose 1.79 percent to close at $82.94 after hitting record intraday high of $83.25 earlier in the session. Shares have been rising sharply since bouncing off their 200-day moving average around $74 a month ago.

The long calls bought yesterday are looking for SIAL to rise above $85 by mid-July. These options lock in the price where traders can buy the stock no matter how far it might climb, but they will expire worthless if the shares remain below that strike price. (See our Education section)

Total option volume in the name exceeded 4,400 contracts, 8.5 times its daily average for the last month.
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