By Pete Najarian, co-founder of OptionMonster
Shortly after the opening bell, OptionMonster's real-time systems detected the purchase of more than 2,700 October 45 puts for 65 cents. The open interest was just 96 contracts, so this was new positioning.
Zimmer's stock rose 0.82% Tuesday to close at $51.52. Shares have been drifting downward since the spring and are still just above their mid-August lows.For the puts purchased Tuesday to turn a profit, the stock would need to drop at least 14% by the Oct. 21 expiration. The company designs and manufactures orthopedic devices, dental implants, and related surgical products. It is scheduled to release earnings results on Oct. 27, less than a week after the options expire. More than 5,400 puts traded against about 1,000 calls. Total option volume was four times greater than average. Najarian has no positions in ZMH.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV