Investors with a lot of money to spend have taken a bearish stance on Humana HUM.
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 HUM, 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 12 uncommon options trades for Humana.
This isn't normal.
The overall sentiment of these big-money traders is split between 33% bullish and 66%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $444,300, and 7 are calls, for a total amount of $327,330.
Expected Price Movements
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $350.0 to $475.0 for Humana over the last 3 months.
Volume & Open Interest Trends
In today's trading context, the average open interest for options of Humana stands at 465.5, with a total volume reaching 991.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Humana, situated within the strike price corridor from $350.0 to $475.0, throughout the last 30 days.
Humana Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| HUM | PUT | SWEEP | BULLISH | 02/16/24 | $420.00 | $218.7K | 628 | 40 |
| HUM | CALL | SWEEP | NEUTRAL | 02/16/24 | $465.00 | $94.8K | 196 | 3 |
| HUM | CALL | SWEEP | BEARISH | 01/19/24 | $475.00 | $80.0K | 895 | 273 |
| HUM | PUT | TRADE | BEARISH | 01/26/24 | $440.00 | $67.5K | 654 | 152 |
| HUM | PUT | SWEEP | BULLISH | 01/17/25 | $350.00 | $64.9K | 215 | 69 |
About Humana
Humana is one of the largest private health insurers in the U.S. with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.
After a thorough review of the options trading surrounding Humana, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Where Is Humana Standing Right Now?
- With a trading volume of 469,638, the price of HUM is up by 0.36%, reaching $468.21.
- Current RSI values indicate that the stock is may be approaching oversold.
- Next earnings report is scheduled for 31 days from now.
What Analysts Are Saying About Humana
Over the past month, 1 industry analysts have shared their insights on this stock, proposing an average target price of $550.0.
- An analyst from Argus Research has elevated its stance to Buy, setting a new price target at $550.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Humana options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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