A large trader bought 33,000 October 43 puts for $2.29 and 985,000 shares for $45.75 on Friday, according to OptionMonster’s tracking systems. Puts are bearish and shares are bullish, so owning both makes the investor directionally neutral.
The trader is looking for volatility to increase, which will drive up the value of the position overall. This means someone believes that the Cigna will move violently and/or volatility will continue to accelerate into the Supreme Court ruling.
Cigna shares fell 1.76 percent to $45.26 on Friday. The trade pushed total option volume in the name to more than 17 times its average amount.
—Najarian has no positions in CI.
Additional News: Cigna CEO Talks Earnings
Additional Views: 7 Health-Care Stocks to Weather Court Challenges
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Jon ‘DRJ’ Najarian is a professional investor, CNBC contributor, and cofounder of OptionMonster.com.
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