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July 16, 2013  Tue 9:32 AM CT

ATHN: SEE CHART GET CHAIN FIND STRATEGIES
Athenahealth has soared in recent days, but one trader apparently believes that further gains will be limited.

optionMONSTER's tracking systems detected the sale of 4,316 July 115 calls for the bid price of $2.60. The volume was more than 4 times the previous open interest, showing that this is a new position.

The call selling is a bet that ATHN has seen a near-term top and will not move much above $115 before expiration at the end of this week. The calls may well be sold against long shares as a covered-call position. (See our Education section)

ATHN is down 1.7 percent to $112.35. It jumped as high as $116.18 yesterday. The medical-billing firm gapped up on Friday from below $92 after it entered an agreement with Clinical Holdings, a physician-services company.
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As discussed last week, when using the Stock Replacement Strategy to replace a stock position to trade direction, we want to use an option that has very similar characteristics to the stock. We talked about using the deep in-the-money, 80 to 85 delta option that is similar in the Greeks and has relatively little extrinsic value which tends to work against us in stock directional trading.

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