McKesson's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bullish stance on McKesson MCK.

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 MCK, 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 10 uncommon options trades for McKesson.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 40%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $362,632, and 3 are calls, for a total amount of $150,643.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $570.0 and $640.0 for McKesson, spanning the last three months.

Volume & Open Interest Trends

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for McKesson's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of McKesson's whale trades within a strike price range from $570.0 to $640.0 in the last 30 days.

McKesson Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

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.

Having examined the options trading patterns of McKesson, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

McKesson's Current Market Status

• Currently trading with a volume of 214,104, the MCK's price is up by 1.33%, now at $617.82.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 7 days.

What The Experts Say On McKesson

3 market experts have recently issued ratings for this stock, with a consensus target price of $674.6666666666666.

• Consistent in their evaluation, an analyst from Baird keeps a Outperform rating on McKesson with a target price of $694.
• An analyst from Citigroup persists with their Buy rating on McKesson, maintaining a target price of $670.
• Consistent in their evaluation, an analyst from Evercore ISI Group keeps a Outperform rating on McKesson with a target price of $660.

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.