BABY on the Move

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Natus Medical is up over 5% percent yesterday on a strong move following a conference call announcing an upward revision in the Q4 2013 revenue guidance.  BABY had a good beat of Q3 earnings based on growth in their neurology and newborn care divisions. The stock has rallied over 40% since October and is showing incredible strength despite disclosures of insider selling in the name.  BABY options are not traded with a large amount of volume, however there is a relatively large position open in the July $30 calls. This looks to be a rather large speculator seeing as these options are not cheap. Today’s move is impressive given the large amount of volume. It is on pace to at least double the daily average.

There was news in the name yesterday but a large share of the recent move has occurred with little to no headlines. This could signify some unknown positives in the name. Couple the move with the large open interest in the July calls and we could be looking at an excellent trading opportunity. Here we will look

Trade: Buy the BABY July 30 Calls for $3.10
Risk: $310 per 1 lot
Reward: Unlimited
Breakeven: $33.10

Unusual Option Activity

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A trader bought 1,395 VTUS Mar 5 Calls for $0.60 (37.9 times usual volume) with stock at $3.86
A trader bought 1,992 ICLR Jan 40 Calls for $01.70 (11.6 times usual volume) with stock at $40.52
A trader bought 1,000 BG Feb 85 Calls for $0.90 (5.5 times usual volume) with stock at $81.62
A trader bought 4,000 EXEL Feb 8 Calls for $0.60 (8.3 times usual volume) with stock at $7.17
A trader bought  1,000 DLB Mar 40 Calls for $2.40 (23 times usual volume) with stock at $40.79

Bearish Signals

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A trader bought 1,500 BONT Jul 11 Puts for $0.75 (18.3 times usual volume) with stock at $16.77
A trader bought 3,000 MAT Feb 44 Puts for $0.80 (5.6 times usual volume) with stock at $46.24
A trader bought 2,350 ECA Apr 17 Puts for $0.65 (3.2 times usual volume) with stock at $17.63
A trader bought 1,400 EMN Feb 70 Puts for $0.45 (3.3 times usual volume) with stock at $79.89

Unusual Options Activity

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A trader bought 19,000 POT  Feb 33 Calls for $0.59 (3.8 times usual volume) with stock at $32.31
A trader bought 6,000 DANG Mar 11 Calls for $0.575 (5.7 times usual volume) with stock at $9.14
A trader bought 1,992 GLUU Jan 3 Calls for $1.20 (5.1 times usual volume) with stock at $4.14
A trader bought 10,000 ELNK Jul 6 Calls for $0.70 (14.8 times usual volume) with stock at $5.29
A trader bought 7,000 HA Feb 10 Calls for $0.70 (11.1 times usual volume) with stock at $10.21

Bearish Signals

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A trader bought 4,100 RT Apr 5 Puts for $0.30 (9.9 times usual volume) with stock at $6.36
A trader bought 8,809 TSM Jul 15 Puts for $0.80 (5.7 times usual volume) with stock at $16.93
A trader bought 1,000 EGLE Jun 4 Puts for $1.15 (2.5 times usual volume) with stock at $4.19
A trader bought 1,757 RSH Feb 1 Puts for $0.05 (3.2 times usual volume) with stock at $2.60

Bullish Signals

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A trader bought 18,000 CMCSA Apr 55 Calls for $1.02 (7.2 times usual volume) with stock at $51.21
A trader bought 1,500 JIVE Apr 12.5 Calls for $0.85 (3.8 times usual volume) with stock at $11.24
A trader bought 1,500 HCA Feb 50 Calls for $1.50 (2.3 times usual volume) with stock at $48.67
A trader bought 17,000 AMD Feb 3 Calls for $1.13 (2.5 times usual volume) with stock at $4.07
A trader sold 1,047 OII Jan 75 Puts for $0.45 (8 times usual volume) with stock at $76.97

Unusual Option Activity

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A trader sold 1,047 OII Jan 75 Puts for $0.45 (8 times usual volume) with stock at $76.97
A trader bought 18,000 CMCSA Apr 55 Calls for $1.02 (7.2 times usual volume) with stock at $51.21
A trader bought 1,500 JIVE Apr 12.5 Calls for $0.85 (3.8 times usual volume) with stock at $11.24
A trader bought 4,100 RT Apr 5 Puts for $0.30 (9.9 times usual volume) with stock at $6.36
A trader bought 8,809 TSM Jul 15 Puts for $0.80 (5.7 times usual volume) with stock at $16.93

Bullish Signals

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A trader bought 23,050 BAC Jan 15 Calls for $1.50 (2.3 times usual volume) with stock at $16.47
A trader bought 2,031 HTZ Jun 31 Calls for $2.05 (3.9 times usual volume) with stock at $28.88
A trader bought 14,000 NRF Mar 15 Calls for $0.325 (2.8 times usual volume) with stock at $13.82
A trader bought 1,100 DLPH Feb 65 Calls for $0.60 (2.9 times usual volume) with stock at $59.68
A trader bought 1,100 SPN Jun 30 Calls for $0.80 (5.4 times usual volume) with stock at $25.82

Bearish Signals

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A trader bought 4,200 YGE Jan 8 Puts for $1.80 (2.9 times usual volume) with stock at $6.44
A trader bought 4,967 CTRP Feb 41 Puts for $1.70 (5.4 times usual volume) with stock at $45.94
A trader bought 3,200 MXIM Jan 29 Puts for $0.65 (5.7 times usual volume) with stock at $28.82
A trader bought 1,000 VNO Jan 85 Puts for $0.25 (2.2 times usual volume) with stock at $89.38
A trader bought 11,000 GNK Apr 2 Puts for $0.60 (4 times usual volume) with stock at $2.43

Unususal Option Activity

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A trader bought 23,050 BAC Jan 15 Calls for $1.50 (2.3 times usual volume) with stock at $16.47
A trader bought 4,967 CTRP Feb 41 Puts for $1.70 (5.4 times usual volume) with stock at $45.94
A trader bought 2,031 HTZ Jun 31 Calls for $2.05 (3.9 times usual volume) with stock at $28.88
A trader bought 14,000 NRF Mar 15 Calls for $0.325 (2.8 times usual volume) with stock at $13.82
A trader bought 4,200 YGE Jan 8 Puts for $1.80 (2.9 times usual volume) with stock at $6.44