Spotlight on McKesson: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on McKesson MCK.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with MCK, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 11 uncommon options trades for McKesson.

This isn't normal.

The overall sentiment of these big-money traders is split between 36% bullish and 36%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $204,282, and 7 are calls, for a total amount of $211,877.

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $340.0 to $610.0 for McKesson over the last 3 months.

Volume & Open Interest Trends

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for McKesson's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across McKesson's significant trades, within a strike price range of $340.0 to $610.0, over the past month.

McKesson Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

About McKesson

McKesson Corp is one of three leading pharmaceutical wholesalers in the us engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with Cencora and Cardinal Health, the three account for over 90% of the us pharmaceutical wholesale industry. Outside the us market, McKesson engages in pharmaceutical wholesale and distribution in Canada. Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.

Following our analysis of the options activities associated with McKesson, we pivot to a closer look at the company's own performance.

McKesson's Current Market Status

• Currently trading with a volume of 1,075,384, the MCK's price is up by 10.26%, now at $605.65.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 90 days.

What The Experts Say On McKesson

Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $684.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * In a positive move, an analyst from Baird has upgraded their rating to Outperform and adjusted the price target to $688. * An analyst from Evercore ISI Group has decided to maintain their Outperform rating on McKesson, which currently sits at a price target of $680.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for McKesson with Benzinga Pro for real-time alerts.