NEW YORK -- Stryker (SYK) is marching to new highs, and the bulls are looking for further gains.
OptionMonster's Heat Seeker tracking system detected the purchase of almost 1,800 December 92.50 calls Monday, most of which priced for 85 cents and 90 cents. Volume was more than twice the 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 provider of medical technology. The low cost of the options helps manage risk and can generate significant leverage to a rally.
SYK rose 1.29% to $91.40 Monday and is up 13% since mid-October. Known for such products as replacement knees and hips, the company has ridden a wave of strong earnings and has beaten estimates in three of its last four quarters.
Overall option volume in the name was almost eight times greater than average Monday, with calls accounting for a bullish 77% of the total.By David Russell of OptionMonster