McKesson is flashing bearish signs, and one investor is looking for more downside.
optionMONSTER's Depth Charge tracking system detected the purchase of about 3,500 September 72.50 puts for $1.10 and the sale of an equal number of September 82.50 calls for $0.80. Volume was more than 12 times open interest in both strikes.
The trade resulted in a cost of about $0.30 and will make money if the pharmacy-benefits stock pushes lower. The position also stands to lose money to the upside but may have been the work of an investor who owns shares. In that case, the trader will simply be forced to sell at $82.50.
MCK is down 1.25 percent to $77.14 in early afternoon trading. The stock has been in a steady uptrend for years but appears to be rolling over and making a lower high. Shares have fallen despite a strong earnings report on July 28, after which McKesson attempted to rally before continuing lower.
Overall option volume in MCK is twice the average amount so far today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
