MDRX – Allscripts-Misys Healthcare Solutions, Inc. – The provider of clinical software, services, information and connectivity solutions to physicians and other health care providers received conflicting ratings by opposite-minded analysts today. MDRX was raised to ‘outperform’ from ‘market perform’ with a 12-month target share price of $22.00 at Raymond James, but was downgraded to ‘equal-weight’ from ‘overweight’ at First Analysis. Shares of the underlying stock are currently up 3.19% to $17.17 as of 1:15 pm (ET). Traders populating MDRX options today cast pessimism on the stock by selling nearly 2,000 calls at the July $17.5 strike for an average premium of $0.68 per contract. Investors short the calls keep the full $0.68 per contract received on the transaction as long as MDRX’s shares trade below $17.50 through July expiration. Potentially devastating losses accumulate for call sellers if they do not currently hold an equivalent number of shares of the underlying stock and MDRX shares rally above the upper breakeven price of $18.18 by expiration day next month. Options implied volatility on the stock is down 9.2% to 40.81% in early-afternoon trading.
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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.
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