Someone apparentely thinks that Wellcare Healthcare is on solid
ground despite a big move in recent months.
optionMONSTER's monitoring systems detected the sale of almost
2,100 September 60 puts for $0.85. Volume was more than twice
previous open interest at the strike, indicating that new positions
obligates the investor to buy a stock if it's below a certain level
on expiration, while letting him or her collect a credit in return.
The strategy is used when they like a company but don't want to
shell out cash getting long at current levels. It also reflects a
belief that downside is limited. (See our
WCG rose 0.51 percent to $67.40 yesterday and is up 31 percent in
the last two months. Much of that rally occurred on Aug. 7 after
the health insurer reported strong quarterly results and raised
The shares peaked above $60 in April and August. That could make
some chart watchers think that level will now become support,
helping to explain yesterday's put sale.
Total option volume was almost 4 times greater than average in the
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