Options Trading News

Thoratec has failed to advance for more than a month, but one investor isn't losing heart.

optionMONSTER's Heat Seeker tracking system detected the purchase of 5,000 May 34 calls for $2.65 and the sale of an equal number of April 34 calls for $1.05. Volume was below open interest in April but not in May, which suggests that an existing bullish position was rolled from one contract to the other.

The investor now has an additional month of upside exposure to the company, whose products help patients survive cardiac problems. By adjusting the trade now, he or she avoided the accelerating pace of time decay that will erode the value of the April contracts in the next four weeks. The move cost an incremental $1.60 over whatever amount the trader initially paid for the April calls.

THOR rose 2.34 percent to $33.77 yesterday. It gapped higher after a bullish earnings report on Feb. 8 but has been trapped in a range since then.

Yesterday's trader probably bought the calls at an earlier date, hoping for quicker upside. He or she apparently still likes it and is willing to shell out more cash to stay onboard. (See our Education section)

Overall option volume in THOR was more than 20 times above average in the session, with calls accounting for more than 99 percent of the activity.