Spotlight on Humana: Analyzing the Surge in Options Activity

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 15 uncommon options trades for Humana.

This isn't normal.

The overall sentiment of these big-money traders is split between 20% bullish and 60%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $276,203, and 10 are calls, for a total amount of $595,370.

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 $220.0 to $320.0 for Humana over the last 3 months.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Humana'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 Humana's whale activity within a strike price range from $220.0 to $320.0 in the last 30 days.

Humana Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

About Humana

Humana is one of the largest private health insurers in the US 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.

In light of the recent options history for Humana, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Humana

• With a volume of 371,988, the price of HUM is up 2.86% at $243.04.
• RSI indicators hint that the underlying stock may be oversold.
• Next earnings are expected to be released in 22 days.

What Analysts Are Saying About Humana

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $292.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Oppenheimer has decided to maintain their Outperform rating on Humana, which currently sits at a price target of $280. * An analyst from Cantor Fitzgerald downgraded its action to Neutral with a price target of $395. * An analyst from Deutsche Bank has decided to maintain their Hold rating on Humana, which currently sits at a price target of $250. * Reflecting concerns, an analyst from Piper Sandler lowers its rating to Neutral with a new price target of $274. * An analyst from TD Cowen has revised its rating downward to Hold, adjusting the price target to $261.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Humana with Benzinga Pro for real-time alerts.