Options traders were snapping up calls in UnitedHealth Group yesterday amid new hopes that health care policy changes might be less harmful to the industry than originally thought.
Trading was focused on the August 30 calls, where 12,309 contracts went for $0.35 all the way up to $1.05 in a strong buying pattern, according to . Open interest was just 1,026 contracts at the strike, which has averaged only 78 calls a day in the last month.
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Last Tuesday the health services company reported that second-quarter profits had more than doubled from levels of a year ago. United Health also expects this year's revenue growth in public and senior business to more than offset the potential for further pressure from the employer market.
United Health rose 5.29 percent yesterday to $29.08 but would need to gain at least another 8 percent in the next month for all the purchased August 30 calls to turn a profit. The shares have tested but failed to stay above the $30 level on previous runs in February and May.
Najarian own UNH calls.
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Pete Najarian is a professional investor, CNBC contributor, regular co-host of CNBC's "Fast Money" and co-founder of .