Decoding McKesson's Options Activity: What's the Big Picture?

Deep-pocketed investors have adopted a bearish approach towards McKesson MCK, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in MCK usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 8 extraordinary options activities for McKesson. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 25% leaning bullish and 50% bearish. Among these notable options, 5 are puts, totaling $184,638, and 3 are calls, amounting to $119,571.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $560.0 to $640.0 for McKesson during the past quarter.

Volume & Open Interest Development

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 $560.0 to $640.0, over the past month.

McKesson 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

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.

After a thorough review of the options trading surrounding McKesson, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Where Is McKesson Standing Right Now?

• With a trading volume of 774,537, the price of MCK is down by -2.37%, reaching $592.52.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 89 days from now.

Expert Opinions on McKesson

2 market experts have recently issued ratings for this stock, with a consensus target price of $676.0.

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. * Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on McKesson with a target price of $677. * Consistent in their evaluation, an analyst from Evercore ISI Group keeps a Outperform rating on McKesson with a target price of $675.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for McKesson, Benzinga Pro gives you real-time options trades alerts.