Deep-pocketed investors have adopted a bearish approach towards Humana HUM, 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 HUM usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 10 extraordinary options activities for Humana. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 20% leaning bullish and 80% bearish. Among these notable options, 8 are puts, totaling $399,746, and 2 are calls, amounting to $58,620.
Projected Price Targets
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $300.0 and $440.0 for Humana, spanning the last three months.
Volume & Open Interest Trends
In terms of liquidity and interest, the mean open interest for Humana options trades today is 234.0 with a total volume of 520.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Humana's big money trades within a strike price range of $300.0 to $440.0 over the last 30 days.
Humana Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| HUM | PUT | TRADE | NEUTRAL | 05/17/24 | $440.00 | $154.0K | 113 | 0 |
| HUM | PUT | TRADE | BULLISH | 03/08/24 | $360.00 | $55.9K | 82 | 75 |
| HUM | PUT | SWEEP | BULLISH | 05/17/24 | $380.00 | $42.0K | 300 | 20 |
| HUM | PUT | TRADE | BEARISH | 09/20/24 | $300.00 | $34.0K | 33 | 1 |
| HUM | CALL | TRADE | BEARISH | 02/23/24 | $385.00 | $31.5K | 181 | 150 |
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.
Humana's Current Market Status
- Trading volume stands at 1,386,014, with HUM's price down by -4.7%, positioned at $361.08.
- RSI indicators show the stock to be may be oversold.
- Earnings announcement expected in 79 days.
What The Experts Say On Humana
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $525.4.
- An analyst from Oppenheimer has revised its rating downward to Outperform, adjusting the price target to $630.
- Maintaining their stance, an analyst from Mizuho continues to hold a Buy rating for Humana, targeting a price of $400.
- Reflecting concerns, an analyst from Truist Securities lowers its rating to Hold with a new price target of $550.
- An analyst from Goldman Sachs has decided to maintain their Buy rating on Humana, which currently sits at a price target of $450.
- Reflecting concerns, an analyst from Cantor Fitzgerald lowers its rating to Overweight with a new price target of $597.
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 Humana, Benzinga Pro gives you real-time options trades alerts.
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