HCA is off $1.83 to $24.77 in heavy trading of 3.9 million shares arfter the company reported earnings. EPS number topped expectations, but revenues fell short. In options action, a 4700-lot of Aug 24 puts trades on the Nashville, TN hospitals company for 40 cents per contract on ISE. A customer bought, to open, according to ISEE data. 5,100 contracts now traded. Aug 25 calls are the second most actives. 1,200 traded in small lots and the activity looks buyer-driven. Aug and Sep 25 puts are seeing interest as well and the overall directional sentiment based on the post-earnings flow in HCA seems somewhat bearish today. It’s probably related to news the DOJ is probing the company’s billing practices — LINK to story.
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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.