What's behind puts in UnitedHealth

optionMONSTER

A large and unusual put trade tops today's option activity in UnitedHealth.

optionMONSTER's Heat Seeker system shows that a trader bought 9,452 December Weekly 71.50 puts for $1 in volume above open interest of 9,534 (after an initial trade at the 71 strike was broken). At the same time, he or she sold 9,452 January Weekly 71.50 puts that expire in three weeks for $1.51. There was no open interest at the latter strike, so that is a new position.

This could be short calendar spread , but the trader is more rolling a short-put position higher and farther out to collect more premium.  (See our Education section)

UNH is up 0.45 percent to $71.05 this morning. The health-benefits company was down near $70 at yesterday's lows but was up near resistance at $75 at the end of November.

More than 21,700 UNH options have traded, nearly triple its daily average for the last month.


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