MHS – Medco Health Solutions Inc. – Contrarians are dominating options trading on Medco Health Solutions today, initiating bullish positions on the stock even though the healthcare company’s shares declined as much as 10.4% this morning to touch down at an intraday and new 52-week low of $47.76. Medco’s shares are currently down a lesser 6.8% to stand at $49.70 as of 12:00 pm (ET). Medco posted second-quarter earnings of $0.83 a share, beating the average analyst forecast of $0.79 a share, before today’s opening bell. Investors expecting Medco’s shares to rebound ahead of August expiration picked up 1,100 calls at the August $50 strike for an average premium of $1.40 apiece. Call buyers at this strike make money if, by expiration, the price of the underlying stock rallies 3.4% over the current price of $49.70 to surpass the effective breakeven point at $51.40. Bullish behavior spread to the higher August $55 strike where traders purchased roughly 1,900 calls for an average premium of $0.32 a-pop. Traders are prepared to profit should the healthcare firm’s shares surge 11.3% to exceed the average breakeven price of $55.32 by August expiration day. Medco’s shares last traded above $55.32 on July 21, 2010.