The volume well above the open interest of just 229 contracts coming into the session, so these were new positions. The total option tally in the name was 5 times its daily average, with calls outpacing puts by 11 to 1.
Community Health shares closed yesterday down fractionally at $19.85. The hospital operator’s stock has lifted off from the December lows near $16 and has moved up with the broader market.
For the calls purchased yesterday to turn a profit, the stock would need to gain roughly 10 percent before the options expire in mid-March.
The company will participate in the Leerink Swann 2012 Global Healthcare Conference scheduled for Feb. 15-16 in New York and then report fourth-quarter results on Feb. 21.
—Najarian has no positions in CYH.
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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.