WebMD Health has pulled back after a strong earnings report last month, and the bulls are getting long.
OptionMonster's trade scanners detected the purchase of 3,000 September 30 calls for $0.95 to $1.05. Volume was almost triple the previous open interest at the strike, indicating that new money was put to work.
Calls lock in the price where shares can be purchased, letting investors cheaply position for gains and generate leverage from small moves in the underlying stock. For instance, a gain of less than 30 percent in WebMD would more than double the value of those September 30 calls.