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Current DateTime: 07:55:27 25 Nov 2009
LinksList Documentid: 30328029

CNBC Stock Blog

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Mar.11
10:52 AM ET
Wednesday, 11 Mar 2009
Options Trader Bets on Scientific Equipment Maker

One large options trader is buying calls in Waters Corporation, which manufactures and sells lab equipment for chemical analysis.

WAT's options volume for the last month averages 552 contracts a day, but yesterday (Tuesday) more than 4,000 of the March 40 calls alone were bought by mid-afternoon, according to OptionMonster's tracking systems.

Shares of Waters, whose liquid chromatography products are used in health care, food safety, water quality, and other uses worldwide, closed yesterday up 5.6 percent to $33.53.

The stock [WAT  Loading...      ()   ] will need to move quite a bit higher for the trade to profit, but then again it was over $40 as recently as early February. (Ticker reflects current share price.)

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Other Scientific Equipment Makers:

Agilent Technologies [A  Loading...      ()   ]

Life Technologies [LIFE  Loading...      ()   ]

Thermo Fisher Scientific [TMO  Loading...      ()   ]

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.

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