By David Russell, reporter at OptionMonster
NEW YORK -- Stryker (SYK) pulled back after running hard in January, and now the bulls are looking for more upside.
OptionMonster's tracking systems showed the purchase of some 2,100 March 65 calls for 60 cents. Volume was more than triple previous open interest at the strike.
Calls lock in the price where investors can buy shares, so they have the potential to generate significant leverage in the event of a rally. But these options also will become worthless if the stock doesn't move by the mid-March expiration.Stryker's shares rose 0.19% to $63.90 Monday and are up 17% so far in 2013. The maker of replacement joints issued a strong preliminary earnings report on Jan. 9, then beat those estimates when final numbers were released two weeks later. Total option volume was twice the daily average in the session, with calls outnumbering puts by a bullish 31-to-1 ratio. Russell has no positions in SYK.
Select the service that is right for you!COMPARE ALL SERVICES
- $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
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV