Options Brief: Allscripts-Misys Healthcare Solutions (MDRX)

MDRX – Allscripts-Misys Healthcare Solutions, Inc. – Shares of the provider of clinical software, services, information and connectivity solutions to physicians and other healthcare providers fell as much as 10.48% to an intraday low of $16.49 this morning on news the firm agreed to purchase Atlanta-based health-care information technology company, Eclipsys Corp., for $1.3 billion in stock. Medium-term options trading on the stock indicates optimism that Allscipts’ shares will rebound by September expiration. Investors anticipating a recovery in share price purchased 1,500 calls at the September $17.5 strike for an average premium of $1.22 apiece. Call buyers make money as long as shares of the underlying stock jump 13.5% from an intraday low of $16.49 to rally above the average breakeven point to the upside at $18.72 by September expiration day. News of the Eclipsys Corp. acquisition lifted MDRX’s overall reading of options implied volatility 10.58% to 45.17% this morning.

About Andrew Wilkinson 1023 Articles

Affiliation: Interactive Brokers

Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.

Interactive Brokers: Interactive Brokers offers direct market access to around 80 electronic global markets from a single account. Successful traders and investors understand that superior technology and lower trading costs can result in greater returns. For 32 years we have been building direct access trading technology that delivers real advantages to professionals worldwide. With consolidated equity capital of US $4.4 billion, IB and its affiliates exceed 1,000,000 trades per day. In addition, our prudent and conservative risk policies make Interactive Brokers a safe haven for your money. Discover some of the reasons why IB, the largest independent US broker/dealer, is the professional traders' and investors' choice.

Visit: Interactive Brokers

Be the first to comment

Leave a Reply

Your email address will not be published.