AmerisourceBergen sees big call selling

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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.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.



This article appears in: Investing , Options

Referenced Stocks: ABC

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