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).
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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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