Market News

October 13, 2016  Thu 11:42 AM CT

Tenet Healthcare is down sharply in recent months, but traders are looking for a rebound.

optionMONSTER's monitoring program shows that about 6,000 November 22 calls were purchased for $1.15 to $1.76 today. This represents fresh buying, as volume is more than 9 times the open interest in the strike.

Long calls lock in the price where investors can buy stock, allowing them to profit from a rally with limited capital at risk. Their cheap cost can also generate significant leverage on a percentage basis if shares move in the right direction. (See our Education section)

THC is up 4.04 percent to $22.14 in midday trading but is down 29 percent in the last three months. The health-care services company is scheduled to report earnings after the close on Oct. 31.

Overall option volume in the name is 3 times greater than average so far today. Calls outnumber puts by a bullish 48-to-1 ratio.

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