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Downside strategy targets HCA

Chris McKhann (chris.mckhann@optionmonster.com)

A trader is looking at the near-term downside in health-care company HCA.

optionMONSTER's Depth Charge system detected the purchase of 1,500 November 44 puts for the ask price of $1.10 and the sale of 3,000 November 42 puts for the bid price of $0.55. Volume was multiples of the previous open interest at each strike, so this is new ratio spread .

The put spread was done at no cost, except for fees and margin requirements. The maximum profit would come with HCA right at $42 at expiration in mid-November. (See our Education section)

HCA is down 0.43 percent to $46.13 this morning. It posted a closing high of $46.56 on Friday and was below $40 a month ago.

Total option volume in the name already tops 4,500 contracts, which is 50 percent above its daily average for the last month.

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