OptionsHouse

Options Trading News

October 12, 2012  Fri 3:47 AM CT

AET: SEE CHART GET CHAIN FIND STRATEGIES
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.
Share this article with your friends


Related Stories

AET

Is Aetna poised for pullback this week?

May 3, 2016

The health-care benefits provider has risen 10 percent in the last three months, but traders are positioning for a possible drop in the short term.

OptionsHouse

Premium Services

Education & Strategy

Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

View more education articles »