MCK ? McKesson Corp.
Shares in the healthcare services company touched a new all-time high this morning, rising 1.2% to $111.18 just before midday in New York. The stock has increased nearly 30% since this time last year. Options traders took to April expiry call options in the early going, and appear to be bulking up on bullish contracts to position for shares in McKesson to extend gains in the near term. The April $115 and $120 strike calls are seeing the most action today, with volumes in excess of 1,000 and 1,700 contracts in play at each strike. It looks like traders purchased most of the calls at average premiums of $0.63 and $0.15 apiece, respectively, in the early going. Call buyers may profit at expiration next month if shares in McKesson continue to hit fresh record highs and trade above average breakeven points at $115.63 and $120.15. Finally, bullish bets initiated on McKesson at the end of February appear to be working for at least one options player already; 800 calls look to have been purchased at the April $105 strike for a premium of $3.20 back on February 28th. These contracts have appreciated markedly along with the price of the underlying, with the bid/ask spread on these contracts now at $6.20/$6.70 as of the time of this writing.