Unpacking the Latest Options Trading Trends in Humana

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 8 uncommon options trades for Humana.

This isn't normal.

The overall sentiment of these big-money traders is split between 12% bullish and 50%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $419,512, and 6 are calls, for a total amount of $216,146.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $240.0 and $290.0 for Humana, spanning the last three months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Humana's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Humana's significant trades, within a strike price range of $240.0 to $290.0, over the past month.

Humana 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

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.

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

Where Is Humana Standing Right Now?

• Currently trading with a volume of 232,475, the HUM's price is up by 1.2%, now at $263.87.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 2 days.

Professional Analyst Ratings for Humana

5 market experts have recently issued ratings for this stock, with a consensus target price of $251.4.

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. * In a cautious move, an analyst from B of A Securities downgraded its rating to Underperform, setting a price target of $247. * An analyst from Stephens & Co. has revised its rating downward to Equal-Weight, adjusting the price target to $250. * In a cautious move, an analyst from Leerink Partners downgraded its rating to Market Perform, setting a price target of $250. * Consistent in their evaluation, an analyst from Truist Securities keeps a Hold rating on Humana with a target price of $260. * Consistent in their evaluation, an analyst from Deutsche Bank keeps a Hold rating on Humana with a target price of $250.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Humana options trades with real-time alerts from Benzinga Pro.