Cryolife Inc (CRY) Post-Earnings Boom Entices Options Players

Cryolife Inc (CRY) call options are in high demand, as the stock zooms higher on earnings

by Alex Eppstein

Published on Jul 26, 2016 at 2:04 PM

Like these four stocks, Cryolife Inc (NYSE:CRY) is capitalizing on a strong earnings report. Specifically, the healthcare firm swung to a sharper-than-expected second-quarter profit, sending the stock 16.6% higher to $14.01 -- and to a seven-year high of $14.18. Meanwhile, CRY has elicited a powerful response from the analyst and options crowds alike.

For starters, the stock is also being boosted by a pair of price-target hikes. Specifically, Ladenburg Thalmann raised its target price to $13.50 from $12, while Canaccord Genuity lifted its outlook to $17.50 from $14.50 -- territory not charted by CRY since mid-2002.

Meanwhile, call options are flying at 33 times the usual intraday rate (albeit on relatively low absolute volume). In the lead is the out-of-the-money October 15 call, which is likely seeing buy-to-open activity. In other words, option bulls are banking on CRY toppling $15 -- and hitting fresh multi-year highs -- by October expiration, at the close on Friday, Oct. 21.

Meanwhile, one group of previously bearish traders may be thanking their lucky stars. Specifically, short interest plunged nearly 30% in the most recent reporting period, suggesting plenty of skeptics hit the exits in the nick of time. With today's bullish gap, Cryolife Inc (NYSE:CRY) now sports a gaudy year-to-date advance of 30%.

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