Surgical implant company Zimmer Holdings is seeing significant options activity, ahead of its earnings report before the opening bell Thursday.
Some 5,100 of the February 40 calls Tuesday traded with more than 86 percent on the offer, according to OptionMonster's tracking systems, which to us says accumulation. ZMH stock is trading up nearly 3 percent today to $43.20.
At the same time Stryker, a competitor of Zimmer in orthopedic implants, is up nearly 4 percent to $43.64 following its positive earnings report after the market closed yesterday.
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SYK options continued to be bullish leading up to the release, and the company expects sales to increase 6 percent to 9 percent in 2009.
I have positions in Zimmer and Stryker.
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.