Options Traders Calling a Bottom in CareFusion Corporation (CFN)

CareFusion Corporation (CFN) is a medical technology company with operations around the world. The company’s stock is currently trading around $39.45 in a 52 week range of $32.48-$41.98. The stock has had a relatively sideways year with shares falling 0.85%. Despite this relative underperformance options traders seem to think shares of CFN will rally through June expiration. Earlier today a trader bought 2,190 CFN Jun 41 Calls for $1.52. This is a very bullish trade and represents some very unusual volume in CFN. More than 24.4 times the average daily option volume has now traded in CFN. Although shares of CFN are breaking through the Ichimoku Cloud to the downside we believe that order flow like this signals for a long opportunity in CFN.

Trade: Buying the CFN Jun 41 Calls for $1.60
Risk: $160 per 1 lot
Reward: Unlimited
Breakeven: $42.60