Lincare Holdings (LNCR) is up 57 cents to $35.97 and the Jan 25 – 30 call spread is sold at $4.50, 5000X. The spread might close a position opened in the 25s a few months ago when more than 4800 traded ask-side for $1.55 and $1.60. Since shares are up nearly 60 percent since that time (late-July), the investor might be banking profits on the 25s, but maintaining a bullish position in the home healthcare company by opening a similar position in the 30s.
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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.