Bears Attack Cardinal Health

Shares of Cardinal Health Inc. CAH may be trading slightly higher this morning to $34.99, but options volume is growing on the put side. The June $35 put was purchased over 4,000 times a short while ago. This action significantly exceeded open interest on the line, indicating new, bearish positioning. Cardinal Health has been slowly trending lower over the past three weeks and is now trading below the 50-day moving average. It found some support at the 200-day, but has not bounced as hard as one would like. Today’s options action suggests that the stock will break down, through the 200-day, which will bring bears out of the woodwork.