McKesson gets a vote of confidence

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McKesson fell with the rest of the market yesterday, but one investor sees little risk of a major drop.

optionMONSTER's tracking programs detected the sale of 7,500 August 100 puts for $2.80. Volume was almost 7 times previous open interest at the strike.

The trader is now obligated to buy shares in the pharmacy-benefits company for $100 if they're below that level on expiration this summer. Including the credit earned, the cost basis would be $97.20. If it remains above $100, the puts will expire worthless, and he or she will keep the $2.80. (See our Education section for more on short puts .)

MCK fell 1.02 percent to $107.25 yesterday but is up 18 percent in the last six months. It's been trending steadily higher for years and hit an all-time high above $110 last month.

Total option volume was 10 times greater than average in the session.



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: MCK

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Stocks

Referenced

60%

Most Active by Volume

87,324,760
  • $7.31 ▲ 22.04%
79,329,227
  • $17.16 ▲ 0.76%
74,153,988
  • $8.87 ▼ 5.84%
49,177,672
  • $34.01 ▲ 4.39%
44,197,901
  • $101.40 ▲ 1.38%
43,197,735
  • $11.70 ▲ 3.36%
42,712,021
  • $74.99 ▲ 1.19%
42,423,171
  • $108 ▲ 0.95%
As of 10/31/2014, 04:15 PM

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