A trader is betting that Medtronic will hold near its 52-week high through the beginning of next year.
optionMONSTER's tracking systems detected the sale of 2,000 January 41 puts for $2.51 in about 3 minutes this morning. Open interest at the strike was 663 contracts at the start of the session, indicating that this is a new position.
MDT is up fractionally to $41.23 in midday trading. Shares of the medical-device maker are just below their high of $41.79 reached after it reported earnings results on Aug. 21, when our systems also detected bullish activity in heavy call buying at the February 47 strike.
Today's put seller believes that the stock will be above the $41 strike price at expiration in mid-January 2013. If shares are below that level, the trader will likely be required to buy the stock, though the effective entry price would be $38.49 once the credit from the put sale is factored in.
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