Aetna (AET) adds 43 cents to $41.11 and an investor sells 9,000 July 45 calls on the stock at 54 cents per contract. It might be a closing trade after an Ohio court ruled in favor of the insurance company in a matter related to a Medicaid contract process. Open interest in July 45 calls on AET is 39,411 and the largest position in the name. Today’s call seller might be closing a bullish position, as shares ticked higher on the news today and ahead of the Supreme Court’s landmark decision on the constitutionality of Obama’s Health Care Law, expected tomorrow at 10:00 a.m. Eastern Time. If entire law or only the individual mandate are rejected, managed care names like AET might see a negative reaction. The group is likely to react positively if the entire law is upheld.
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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.