Smart Money Is Betting Big In HUM Options

Investors with significant funds have taken a bullish position in Humana HUM, a development that retail traders should be aware of.

This was brought to our attention today through our monitoring of publicly accessible options data at Benzinga. The exact nature of these investors remains a mystery, but such a major move in HUM usually indicates foreknowledge of upcoming events.

Today, Benzinga's options scanner identified 9 options transactions for Humana. This is an unusual occurrence. The sentiment among these large-scale traders is mixed, with 55% being bullish and 33% bearish. Of all the options we discovered, 8 are puts, valued at $395,727, and there was a single call, worth $32,250.

Latest Startup Investment Opportunities:

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $370.0 to $390.0 for Humana over the last 3 months.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Humana's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Humana's whale activity within a strike price range from $370.0 to $390.0 in the last 30 days.

Humana Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

About Humana

Humana is one of the largest private health insurers in the us with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.

Having examined the options trading patterns of Humana, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Current Position of Humana

• With a volume of 289,293, the price of HUM is up 0.1% at $386.24.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 7 days.

What Analysts Are Saying About Humana

3 market experts have recently issued ratings for this stock, with a consensus target price of $384.0.

• An analyst from Piper Sandler downgraded its action to Overweight with a price target of $392.
• An analyst from Truist Securities persists with their Hold rating on Humana, maintaining a target price of $400.
• In a cautious move, an analyst from Cantor Fitzgerald downgraded its rating to Neutral, setting a price target of $360.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Humana with Benzinga Pro for real-time alerts.