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Health Net Options, Shares: Why Are They Moving?

Wednesday, 28 Jan 2009 | 12:48 PM ET

Health services firm Health Net has been rising for the last month and is up another 6 percent Wednesday amid heavy options volume.

In the first 90 minutes of the session alone, HNT contracts had already traded more than seven times the 20-day average with upside calls on several strikes in several months. The most active trading was in the February 17.5 calls, which went for $0.40, according to OptionMonster's tracking systems.

Health Net shares are trading higher at midday to $15.85, up roughly 50 percent since hitting a low of $10.35 on Dec. 29 but still far below its 52-week high of $48.78 from last February. The latest run has been strong and swift, and the options activity today suggests that HNT may have more to go.

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Competitors:

Cigna

UnitedHealth Group

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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of OptionMonster.com.

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Disclaimer

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