Centene is fighting back from a mid-year selloff, but one trader is positioning for another potential drop in the health insurer’s shares.
optionMONSTER’s Depth Charge tracking program detected the purchase of 2,250 December 37.50 puts for $0.10 and $0.15. Volume was almost 8 times open interest at the strike, indicating that a new position was initiated.
CNC is down 0.68 percent to $45.14 in morning trading. The stock climbed almost 50 percent since the middle of the year, when it got hammered over worries about states funding its health plans. The company predicted a strong rebound in July and then crushed estimates when results were reported on Oct. 23.
— Option Monster