By Mike Yamamoto, managing editor of OptionMonster
NEW YORK -- Hologic (HOLX) saw upside action two weeks ago, and the bulls came back Wednesday.
About 4,500 November 22 calls were purchased for 65 cents to 90 cents, according to OptionMonster's tracking systems. Open interest in the strike was just 145 contracts before the trades appeared, showing that this is fresh buying.
These calls lock in the price where the stock can be purchased in the next five weeks no matter how far it might climb. But the contracts will expire worthless if the shares remain below $22 through mid-November.Hologic's stock rose 4.16% to $21.51 on Wednesday and is back above its 100-day moving average. The medical-device maker fell sharply after presenting at a Morgan Stanley conference on Sept. 10, and it is now trying to break out of a tight range in place for the last month. Total option volume in the name topped 9,900 on Wednesday, almost six times its daily average for the last month. Of those contracts, fewer than 1,500 were puts. The bullish action Wednesday follows buying in the March 22 calls on Sept. 25. Yamamoto has no positions in HOLX.