OptionsHouse

Options Trading News

February 27, 2013  Wed 3:16 AM CT

HCA: SEE CHART GET CHAIN FIND STRATEGIES
HCA Holdings has been pulling back since reporting quarterly results earlier this month, but one trader apparently believes that the slide is coming to an end.

optionMONSTER's tracking systems detected the sale of 2,500 April 34 puts in one print for $0.80 yesterday. Open interest in the strike was just 30 contracts before the session began, clearly showing that this is a new position.

The put seller is betting that HCA will hold above the $34 strike price by expiration in mid-April. If the stock falls below that level, the trader will face the obligation to shares at an effective price of $33.20 when the credit from the put sale is included. (See our Education section)

HCA rose 1.22 percent to close at $35.64 yesterday but is down more than 6 percent since coming into the month above $38. The hospital operator spiked to an all-time high of $39.60 on Feb. 5 when it released fourth-quarter results, but the stock has been declining ever since.
Share this article with your friends


Related Stories

HCA

Put sale sees limited downside in HCA

May 25, 2016

The acute-care facility operator has risen 11 percent in the last three months, and at least one trader is betting on a floor in its shares.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Volatility and the Option Pricing Model

OptionsĀ are derivatives of underlying assets and can be boiled down to a mathematical formula. As such, the value of an option is determined by a formula calledĀ the Options Pricing Model.

View more education articles »