We'll look at a health insurer stock with an interesting set-up heading into a big industry conference this week and break down various options trades being applied on it.
Centene (CNC) traded nearly 9 times the average daily call volume on Friday ahead of Barclays 26th annual Global Healthcare Conference this week.
Most active were the March 22nd weekly $82 calls and the March 28th weekly $82 calls.
The mid price on the March 28th weekly $82 calls was nearly $2, substantially higher than the trader who initiated the block paid, and the weekly March 22nd calls would collect less than a quarter.
If one owns the stock, a hedge might make sense, such as a weekly at-the-money put spread as illustrated below.
Persons:
Bernstein, Centene, Cowen, what's
Organizations:
Barclays, Global Healthcare, Traders
Locations:
Texas, Florida, Georgia