Humana doesn't want to say die.
The health insurer opened lower red yesterday but quickly met with
heavy buying in the options and the stock. The May 90 calls were
especially active, changing more than 8,000 times against open
interest of 2,761 contracts, according to optionMONSTER's Heat
Seeker system. Most of the large blocks initially priced for $1 to
$1.35, but then the stock rallied and they traded for $2.35 to
At one point HUM was down almost 3 percent, but it ended the
session with a 0.5 percent gain to $89.17. Shares have been
staggering since they gapped lower on a weak earnings report in
early February. The stock has continued to make higher lows since
then, which could be leading some chart watchers to believe that
it's still trending higher.
Given that yesterday's options are vulnerable to
as expiration approaches, the buyer is looking for HUM to keep
moving higher in the near term. (See our
Overall option volume was 18 times greater than average in the
session, with calls outnumbering puts by 8 to 1.