Puts Active on McKesson Following Lawsuit (MCK)

Shares of McKesson Corporation MCK are lower on the session by 3.47%, currently trading at $60.00. The stock fell sharply this morning on word that a key customer has filed a lawsuit against the company for breech of contract. Option trading is favoring the puts, which is not surprising. The strikes seeing the heaviest action are the October $57.50, $55.00, and $52.50 strikes, where 1,300, 1,700, and 2,700 contracts have traded, respectively. Volume exceeded open interest on all strikes. McKesson Corporation provides medicines, pharmaceutical supplies, information and care management products and services across the healthcare industry. The company operates in two segments. The McKesson Distribution Solutions segment distributes ethical and drugs, medical-surgical supplies and equipment and health and beauty care products throughout North America. This segment also provides specialty pharmaceutical solutions for biotech and pharmaceutical manufacturers, sells financial, operational and clinical solutions for pharmacies and provides consulting, outsourcing and other services. This segment includes a 49% interest in Nadro, S.A. de C.V., and a 39% interest in Parata Systems, LLC. The McKesson Technology Solutions segment delivers enterprise-wide clinical, patient care, financial, supply chain, strategic management and software solutions. This segment also includes its Payor group of businesses. For more great research like this, as well as how to play it through options…please visit Benzinga's Options & Volatility Edge and Benzinga's Cash Generator.