Medco Health Solutions (MHS) is up $3.36 to $67.50 on hopes for a positive FTC ruling related to the ESRX-MHS deal. Recent options trades on the stock include an April 67.5 – 75 (1X2) call ratio spread. The strategist paid $3, 3000X, and appears to be opening a new position on hopes for a move towards $75 (~11.1 percent) through the April expiration (53 days). 22,000 calls and 12,000 puts now traded in MHS and implied volatility is easing 10.5 percent to 61.5.
About the Author (Author Profile)
Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.