Trading is bullish in BioMimetic Therapeutics today, as the small-cap health care name prepares for a presentation next week.
BMTI rallied 11.7 percent to $13.08 in afternoon trading, and options volume surged to six times the average amount, according to OptionMonster's systems. New money flowed into the October 15 calls, with the largest trades pricing for $0.90 to $1.10. Almost 2,300 contracts changed hands against open interest of 1,931.
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The maker of bone-healing devices is scheduled to present at the Orthopedic Trauma Association's Annual meeting on Oct. 8-10 and an American Orthopaedic Foot & Ankle Society conference on Nov. 6-7. The stock is up 46 percent in the past three months.
Today's option buyers are looking for a big move: The stock needs to rally about 22 percent over the next nine sessions for the October calls to turn a profit. Other investors purchased the November 15 calls for $2.40 to $2.60, betting on a 33 percent move by November expiration. At 1,153 contracts, volume in the strike exceeded open interest.
Calls outnumbered puts in the name by 3 to 1, reflecting the bullish expectations.
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David Russell is a reporter and writer for OptionMonster.