By David Russell
Humana (HUM) has been soaring for the last month, and now traders are looking for the health insurance stock to come back to earth.
optionMONSTER's Depth Charge tracking program detected the purchase of about 5,200 February 48 puts against open interest of 1,713 contracts. Large institutional transactions occurred for $1.35 and $1.40.
HUM was down 2.49% to $50.65 in morning trading but is still up 34% in the last three months. The stock has been climbing amid aggressive call buying as investors wager national health-care reform efforts will be less punitive than originally expected.
HUM is pulling back after trading as high as $52.26 yesterday, its higher price since March 2008. The shares must decline more than 9% by expiration for today's put buyers to turn a profit. HUM company plans to release fourth-quarter results before the bell on Feb. 1.
Our monitoring systems also detected the sale of more than 3,700 February 50 calls for $3.20. Volume was below open interest, suggesting an investor removed a bullish long position in the stock.
Overall options volume in the name is more than twice the average level so far today.
(Chart courtesy of tradeMONSTER)