HCA Holdings, Inc. (HCA) is a holding company that owns and operates healthcare facilities. The company’s stock is currently trading around $50.25 in a 52 week range of $35.20-$52.49. The stock has been performing well this year with shares rallying 5.4% year to date. Options action during today’s trading session suggests that traders believe this trend will continue through April expiration. Earlier in the session a trader bought 4,700 HCA Apr 50 calls for $1.60. This is a very bullish trade that requires this trader to lay out over $750,000 in capital. Shares of HCA are also trading above the Ichimoku Cloud, indicating the stock is in bullish territory. With a strong technical setup and bullish order flow we believe that HCA is setting up well for a long position.
My Trade: Buying the HCA Apr 50 Calls for $1.60
Risk: $160 per 1 lot
Reward: Unlimited
Breakeven: $51.60