By Pete Najarian of OptionMonster
NEW YORK -- Traders are looking for Danaher (DHR) to hit record highs this week.
OptionMonster's tracking systems detected the purchase of almost 4,700 November 75 calls for 15 cents to 30 cents. Volume was more than triple open interest at the strike, indicating that new money was put to work on the long side.
These calls lock in the price where the industrial conglomerate can be purchased. Investors use the options to prevent a stock from running away from them or to leverage a rally.
Danaher shares fell 0.62% to $73.90 on Tuesday but are up more than 30% so far this year. The stock peaked at $74.77 on Monday, so Tuesday's call buyers are looking for a breakout to new highs before the calls expire at Friday's closing bell.
The company's last earnings report in October beat expectations on the top and bottom lines. Danaher provides industrial and scientific equipment used in applications such as communications, life sciences, manufacturing, and dentistry.
Total option volume was four times greater than average in the name. Calls outnumbered puts by 6,650 to 1,600, a reflection of the session's bullish sentiment.
Najarian has no positions in DHR.