Market Overview

Call Spread Trades on Medifast (MED)

Shares of Medifast, Inc. (NYSE: MED) are lower on the session by 1.60%, currently trading at $26.69. The stock has been moving largely lower over the past six months after popping to a recent high near $38.25. The stock is now sitting on the 200-day moving average.

Call volume is running at 5.32x the daily average today, though it is unclear whether or not the action is bullish or bearish. A short while ago the January 2011 $29/33 call spread traded 1,440 times for $1.22. The trades occurred at the same second, though went off in between the bid and ask prices.

If I had to make a guess, I would say this was a bullish spread.

Volume exceeded open interest on both strikes.

Medifast, Inc. is engaged in the production, distribution, and sale of weight management and disease management products and other consumable health and diet products. The product lines include weight and disease management, meal replacement, and vitamins. The wholly owned subsidiaries of the company include Jason Pharmaceuticals, Inc., Take Shape for Life, Inc., Jason Enterprises, Inc., Jason Properties, LLC and Seven Crondall, LLC.

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Posted-In: Technicals Options Trading Ideas

 

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