CareFusion reports earnings this morning before the market opens, and one big investor has positioned for a rally.
OptionMonster's tracking systemsdetected the purchase of 2,000 November 25 calls for $0.25 and $0.30. The trades occurred early in the session against open interest of 828 contracts.
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CareFusion rose 2.41 percent to $22.55 yesterday and needs to climb 12 percent by expiration for the calls to turn a profit. The medical equipment company is up 13 percent since being spun off from Cardinal Health on Sept. 1. Today will be its first earnings report as an independent company.
Cardinal , which also reports this morning, saw moderately bullish activity in the purchase of a block of in-the-money calls.
Options volume in CareFusion was 10 times greater than average yesterday, with calls outnumbering puts by 31 to 1. It was 85 percent above average in Cardinal.
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David Russell is a reporter and writer for OptionMonster.