As Stryker Marches to New Highs, Bulls Look for More Gains

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

Russell has no positions in SYK.

More from Options

6 Chip Stocks to Play Into Earnings

6 Chip Stocks to Play Into Earnings

Why VF Corp. Call Prices Doubled, Before Earnings

Why VF Corp. Call Prices Doubled, Before Earnings

Pretium Resources Calls Quadruple

Pretium Resources Calls Quadruple

Marvell Merger News Bears Fruit for Options Players

Marvell Merger News Bears Fruit for Options Players

Bulls Drill for Fast Profits in the U.S. Oil Fund

Bulls Drill for Fast Profits in the U.S. Oil Fund