Market News

November 23, 2016  Wed 7:47 AM CT

Community Health Systems has plummeted in recent months, and traders see even more downside potential.

OptionMonster's monitoring system detected the purchase of more than 52,400 December 5 puts for $0.10 to $0.15 yesterday. This represents fresh buying, as open interest in the strike was just 846 contracts before the session began.

Long puts lock in the price where a stock can be sold, so they make money if shares decline. Investors use them to hedge long positions or to speculate on a drop. (See our Education section)

CYH fell 1.38 percent to $5.73 yesterday and is down 45 percent in the last three months. The acute-care facility operator is expected to report earnings in pre-market hours on Feb. 13.

Overall option volume was 10 times greater than average in the name yesterday. Puts outnumbered calls by a bearish 70-to-1 ratio.

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