AmerisourceBergen turned bearish before the rest of the market, and investors remain doubtful about its prospects over the next two months.
optionMONSTER's tracking systems detected the sale of about 3,500 October 40 calls for $1.10 and $1.05. The October contracts had just become available following August expiration last Friday, so there was no open interest in the strike.
ABC fell 0.40 percent to $37.39 yesterday, and is down 8 percent in the last month. It touched an all-time high of $43.47 in early July, and then started drifting lower. The shares suffered a sharp and bearish gap on July 21 after Express Scripts announced a $29 billion purchase of Medco Health Solutions, which threatens to increase competition in the pharmacy-benefits industry.
ABC has been trending lower since, and failed to hold early gains after a strong earnings report on July 28. It then made a higher low earlier this month after falling all the way below $35.
Monday's call selling reflects a belief that the shares will remain below $40 through expiration. The trade was probably the work of an investor who owns stock and wants to earn some income without dumping their position.
Overall options volume in the name was 9 times greater than average in the session.
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