Options Trading News

October 12, 2012  Fri 3:47 AM CT

Traders are looking for a quick pop in Aetna today.

More than 2,400 Weekly 43.50 calls traded in a strong buying pattern late yesterday, with premiums rising from $0.10 to $0.17, according to optionMONSTER's Heat Seeker tracking system. Open interest was only 13 contracts in the strike at the start of the session, so these are clearly new positions.

These long calls are looking for the stock to rise above the $43.50 strike price before they expire at the end of today's session. The Heat Seeker also detected some call buying in the regular monthly October 43.50 contracts that expire at the end of next week.

AET rose 3.34 percent yesterday to close at $43.29, continuing its ascent from below $40 at the start of this month. The insurance company's shares broke above their 200-day moving average yesterday after bumping up against that level for about a week.

Total option volume in the name was about 24 percent higher than average yesterday, with calls outpacing puts by more than 2.5 to 1.
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