How bull is managing Thoratec position

Thoratec has been rallying and one investor apparently thinks that the gains will continue.

optionMONSTER’s Heat Seeker monitoring program detected the purchase of 2,000 August 33 calls for $3 and the sale of an equal number of July 30 calls for $5.20. Volume was below open interest in July but not August, which suggests an existing position was rolled from one contract to the other.

The investor collected a credit of $2.20 and has an additional month to profit from upside in the maker of heart devices. He or she probably entered the trade when the shares were lower and is recovering some capital while adding a month of long exposure. (See our Education section for more on how options can be used to manage positions and limit risk.)

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— Option Monster

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