Market News

January 9, 2017  Mon 6:45 AM CT

A large trader is looking for more gains in Illumina by the end of next week.

Our scanners show that 5,322 January 135 calls were sold for $8.50 while 5,322 January 145 calls were purchased for $4.10 on Friday. Volume was below open interest in the lower contracts, indicating that the trader is taking some profits off the table and rolling a bullish position to a higher 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)

ILMN rose 5.15 percent to $141.49 on Friday but is down 28 percent in the last three months. The genetic-analysis company reported bearish results on Oct. 10 and is expected to announce its next quarterly numbers after the close on Feb. 7.

Overall option volume was 7 times greater than average in ILMN on Friday. Calls outnumbered puts by a bullish 8-to-1 ratio.

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