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NEW YORK -- AbbVie (ABBV) - Get AbbVie, Inc. Report has rallied, and now the bulls are turning to former parent Abbott Laboratories (ABT) - Get Abbott Laboratories Report

OptionMonster's Heat Seeker tracking program detected the purchase of about 7,500 December 46 calls Tuesday, most of which priced for 37 cents. Volume was 20 times the strike's previous open interest, which indicates that new money was put to work. 

Long calls lock in the price where investors can buy shares in the maker of health care products. The cheap cost of the options lets traders position for profits from a rally at limited risk while also creating the possibility for significant leverage if the stock pushes higher. 

Abbott rose 2.03% to $45.22 on Tuesday and at one point hit an all-time high of $45.62 in the session. The stock has been steadily working higher for more than three years and is up about 15% since the broader market bottomed in mid-October. 

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Overall option volume in Abbott was eight times greater than its daily average for the last month, with calls accounting for a bullish three-quarters of the total. 

Calls in AbbVie, which was spun off in late 2012, have already handed investors profits of about 50% after triggering alerts on our InsideOptions Pro subscription service one week ago. 

-- Written by David Russell of 


Russell has no positions in ABT or ABBV.