Options Brief: Waters Corp. (WAT)

WAT – Waters Corp. – Call options on the medical equipment maker are in high demand this afternoon ahead of the firm’s second-quarter earnings report scheduled for release ahead of the opening bell on Tuesday. Waters’ shares rallied more than 2.00% today to an intraday high of $65.91. Options investors positioning for a significant bullish move in the price of the underlying stock ahead of August expiration purchased approximately 8,900 call options at the August $70 strike for an average premium of $0.69 apiece. Investors long the calls stand ready to make money as long as Waters’ shares jump 7.25% over today’s high of $65.91 to trade above the average breakeven point to the upside at $70.69 by August expiration. The impending earnings announcement as well as increased demand for call options on the stock lifted Waters Corp.’s overall reading of options implied volatility 2.7% to 30.65% by 3:15 pm (ET).

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Your email address will not be published.