Why trader is selling calls in Danaher

Danaher continues to bounce, but one call seller is betting that it will be limited.

DHR is up fractionally on the day, trading at $52.43. The medical and industrial producer maker rebounded off support at $50 last week after hitting a 2012 low of $49.18. However, the stock has been trending lower from its 52-week high of $56.45 set at the start of April.

More than 5,300 DHR options have changed hands so far, about 4 times its daily average, according to optionMONSTER’s systems. A trader sold 4,400 January 57.50 calls for the bid price of $1.45 against previous open interest of just 683, so this was a new opening position.

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— Option Monster

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