The bulls targeted UnitedHealth for the second session in a row
optionMONSTER's tracking programs detected the purchase of about
10,000 November 60 calls for $0.32 and $0.33. Open interest in the
strike was 7,305 contracts at the beginning of the day, indicating
that new positions were initiated.
lock in the price
investors must pay to buy shares in the health-insurance giant.
That gives them significant leverage in the event of a rally, but
the contracts can expire worthless if the shares don't move. (See
UNH fell 0.64 percent to $56.18 yesterday but has been holding
support at its 200-day moving average after a so-so quarterly
report last week. Investors purchased the November 55 calls
, also looking for a rally.
Overall option volume in UNH was quadruple its daily average
yesterday, with calls accounting for a bullish 80 percent of the
(A version of this post appeared on
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