Health Management Associates (HMA) ticks 18 cents higher to $6.52 on light volume of 675K shares, but options volume is running 8X the daily averege, being led by a buyer of 6800 July 8 calls for 20 cents per contract. Looks opening and comes as the stock advances 6.9 percent on the week after several months of lackluster action. HMA’s 52-week high of $11.26 dates back to July of last year. Today’s order flow seems to reflect hopes for a move back beyond $8 through the July expiration, in 6 weeks. It might be a play on the expected Supreme Court ruling related to the national healthcare bill.
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.