This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Bulls Seek More Upside in Varian

Stocks in this article: VAR

By David Russell, reporter at OptionMonster

NEW YORK -- Varian Medical Systems (VAR) gapped higher and now the bulls are hunting for more gains.

OptionMonster's data-mining systems detected the purchase of about 3,200 November 70 calls, most of which priced for 70 cents and 87 cents. Volume was six times the open interest in the beginning of the day, indicating that new money was being put to work.

The investor has locked in an entry price of $70 to buy stock in the company, which makes radiation equipment used to treat cancer and build X-ray machines. Those options will generate nice leverage if the stock continues to rally through that level. If it doesn't, however, the calls will expire worthless.

Varian's shares rose 3.01% to $68.77 Thursday and are up 20% in the last week. Most of that move came on last Friday after earnings of $1.08 per share beat the $1.03 consensus estimate. Revenue guidance was also significantly better than expected as the company gains customers overseas.

Total option volume was seven times greater than average in the name, with calls accounting for more than three-quarters of all contracts.

Russell has no positions in VAR.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,416.97 +225.60 1.31%
S&P 500 2,021.43 +19.27 0.96%
NASDAQ 4,682.1450 +44.1510 0.95%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters