Unitedhealth Sees Monster Put Options Trade (UNH)

Posted in Options 
July 7th, 2008

On the immediate surface, there has been some unusually high PUT OPTION activity seen in Unitedhealth Group, Inc. (NYSE: UNH) today. This is probably an easy explanation of a PUT SPREAD, with the caveat that this means someone else took the other side of the bet. As of 2:50 PM EST we had seen the following options trade in the PUT options for July 2008 expiration:

July-Strike Volume OpInt
$25.00 PUTS 52,407 31,159
$30.00 PUTS 48,446 52,277

based upon the breakdown of the trade, it looks like one huge PUT SPREAD was made. As a reminder, if you add and divide these you come up with essentially 50,000 contracts. That is a bet on 5 million shares if you consider that each contract is worth 100 shares.

On Unitedhealth stock itself, we’ve “only seen 12+ million shares trade hands so far today. This trades about 12.9 million share son an average day.

Jon C. Ogg
July 7, 2008

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