Valeant Pharmaceuticals International has been an absolute monster stock for several months, and option traders are betting that the run will continue.
Bulls were going out in time yesterday, as more than 9,000 January 52.50 calls traded in a heavy buying pattern for $6 to $6.50, according to OptionMonster’s real-time systems. The open interest at the beginning of the session was just 13 contracts, so these were clearly new positions.
Valeant shares closed yesterday up 1.13 percent to $48.45 as shares attempt to hold support at their 50-day moving average. The stock is up more than 50 percent since hitting a 52-week low of $32.05 on Oct. 4.