Options Traders Bet Heavy on Medical Devices
Options traders Tuesday are betting on more upside in medical technology company Stryker.
Following heavy volume yesterday, SYK continues to see activity at the January 40 calls, according to OptionMonster's tracking systems, which track unusual options trading.
Stryker shares are up today by some 1 percent to about $40.30, approaching the $41 level where it was trading before the medical technology company lowered its revenue guidance Friday.
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The January 40 calls are trading at $2, and the January 40-45 spread is expanding slowly to $1.50. Yesterday Leerink, a firm that touts itself as "the most knowledgeable healthcare investment bank," maintained an "outperform" rating on the stock but cut estimates after the earnings warning by Stryker, which specializes in such products as orthopedic implants.
Rival Medical Devices Firms:
Johnson & Johnson
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.