Takeover Talk Drives Medical Device Maker Shares
Intuitive Surgical, a California company that makes endoscopic instruments, is running higher along with heavy options activity amid takeover rumors.
Calls are jumping this morning as ISRG stock is up 2 percent on the day to about $104. Normal full-session call activity is 1,300 contracts, but 2,500 changed hands in the first 45 minutes of trading alone, according to OptionMonster's real-time tracking systems.
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M&A rumors have been especially active in the health care sector recently, and Intuitive Surgical is only the latest of many names mentioned of late. The pharmaceuticals industry, in particular, has been leading the way in takeover news, with Pfizer's $68 billion bid for Wyeth this week and other major companies publicly stating their intentions to seek deals.
Medical Device Makers:
St. Jude Medical
Johnson & Johnson
Jon 'DRJ' Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.