Activis is sitting at record highs, and traders are ready for a breakout.
optionMONSTER’s Heat Seeker monitoring program detected the purchase of 2,000 October 240 calls for $6.10. An equal number of September 240 calls was sold at the same time for $1.40, but volume was below open interest. This suggests that an existing bullish position in the drug maker was rolled forward in time.
Long calls lock in the price where investors can buy shares. They can also move capital from on contract to another as time passes, letting them profit from a rally with limited risk.
— Option Monster