Shares of Agilent Technologies (A) are trading lower on the session by 0.24%, at $37.01. The stock has been trending lower for the better part of nine months, but may have formed a double-bottom on Oct 23rd.
With shares gaining momentum to the upside, calls are active today at 18x normal volume. The vast majority of the action is coming in February 2013, where the $38/43 call spread has traded a total of 17,900 times. The action came is lots of 2,585 contracts, 2,585 contracts, and a final block of 4,250 contracts. In all cases the $38 strike was purchased, while the $43.00 call was sold at a net debit of $1.13-1.20.
Given the open interest on both strikes, 15,662 and 197 contracts respectively, it is not entirely clear what has happened here. It is likely that this was fresh positioning, but there is also a chance that this was a roll of calls to the upside.
In either case, there is a bullish case being played out here.
30-day implied volatility is up 0.6% today to 25.74%, while 10-day realized vol is registering 30.61%.
Agilent Technologies, Inc. is a measurement company providing bio-analytical and electronic measurement solutions to the communications, electronics, life sciences and chemical analysis industries.?