St. Jude Medical (STJ, news, chart, volatility) options volume is running above normal levels, with 6,420 calls and 800 puts traded. Investors are focused on the January 25 calls. 5,800 traded, including a block of 4,900 hitting mid-market for $3.40 per contract at 9:50 ET. Open interest is only 139 contracts, suggesting some new positions today. Some might be part of a buy-write strategy as two blocks of 294K STJ shares have also traded this morning. The day’s other trades have been in fewer than 200 contracts, with most hitting on the offer for $3.40 and $3.60 a contract.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.