AmerisourceBergen fell hard today, and now investors apparently
think that it's dead in the water.
optionMONSTER's tracking systems detected the sale of more than
7,500 contracts each in the August 39 calls for $1.05 to $1.10 and
the September 40 calls for $1.50. There was barely any open
interest in either strike before the activity occurred.
While the trades were similar in size, they were more than two
hours apart, suggesting that they were the work of different
investors. There was also heavy selling in the August 38 puts for
$0.76 to $0.80, where more than 6,700 contracts changed hands.
ABC is down 5.15 percent to $39.60 in afternoon trading and at one
point was down 10 percent. The drop came after Medco Health
Solutions, a longtime customer of its mail-order drug business,
agreed to be acquired by Express Scripts.
The transaction could potentially cast doubt on whether the
relationship will continue. ABC said it December 2007 it was
signing a new five-year contract, at which time the MHS accounted
for about 8 percent of total revenue.
The next big event for ABC will be the release of fiscal
third-quarter earnings the morning of July 28.
Overall option volume is more than 50 times greater than average in
the name so far today.
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