by Andrew Houghton and Nick Atkeson 05/08/08
Hill-Rom Holdings (HRC) runs two businesses serving the healthcare and "death care" industries.
The company makes medical equipment to keep you alive. But if living isn't for you, HRC also owns the Batesville Casket Company to accommodate burial and cremation needs, including personalization and memorialization products and services.
Options investors have decided that HRC might want to begin picking out a casket for its own use. Options flow today is 34 times usual volume, with the bulk of the flow concentrated in the HRC Sept 30 Puts (HRCUF).
Today's trades follow yesterday's unusual volume in the same expiration month and strike price. Yesterday marked a one-year daily volume record for options trading in HRC, and today's volume doubles yesterday's.
It does beg the question: Is it wrong for a healthcare company to sell caskets? It looks like HRC may be getting a dose of its own medicine.
For more fresh options trading ideas from Andrew and Nick, click here.
