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Humana Inc. Message Board

  • Billboardjock Billboardjock Sep 26, 2000 4:08 PM Flag

    x2073: I think you are confused. The

    HUM open interest of Oct. 10 puts is only 71
    contracts. Also, the put open interest at other future
    strikes is not significant. On the other hand, the open
    interest of Oct. 10 calls is over 4,000 contracts.

    Furthermore, keep in mind that a floor trader is ususally not
    short when calls are purchased. For every buyer, there
    is usually a seller(s). Someone had to sell those
    calls, i.e., the right to call away 200,000 shares on or
    before Oct. 20, 2000.

    Hope this helps.

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    • Isn't that the important question? If it was Jo
      Blo then yes, it is probably bearish in the near
      term. But if it was, say, Goldman Sachs well then that
      would be quite bullish. When UNH made a buyout bid a
      couple of years ago the call options were bought like
      crazy the week before the announcement -- of course the
      company, the price, and the date of the buyout were also
      posted on this board a few days before the options
      started to move. So lots of people knew what was about to
      happen. Nothing like that happening now.

      does anyone really want to sell their HUM at 10
      regardless of what happens in the short term? I want at
      least 15 for my shares -- I can wait for any short term
      blips to pass.

      By the way, HUM is very simple to
      trade -- you just buy when David Jones buys and sell
      when he sells. Ignore everything else.

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