THC – Tenet Healthcare Corp. – It looks like a number of investors are placing near-term bullish bets on the health care services company this morning by selling put options. Tenet’s shares rallied as much as 5.45% thus far in the session to touch an intraday high of $4.45. Optimistic players expecting Tenet’s shares to exceed $4.00 through October expiration shed approximately 7,500 puts at the October $4.0 strike to take in premium of $0.05 per contract. Put sellers keep the full premium pocketed on the transaction as long as THC’s shares trade above $4.00 through expiration day next month. Investors short the puts are apparently happy to have shares of the underlying stock put to them at an effective price of $3.95 each in the event that the puts land in-the-money at expiration. The overall reading of options implied volatility on Tenet Healthcare is lower by 6.4% to arrive at 41.99% as of 11:55 am ET.
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Andrew Wilkinson is the senior market analyst at Interactive Brokers Group, where he provides daily commentary and analysis on U.S. equity options trading throughout the trading day. Andrew provides webinars designed to explain option-related trading scenarios covering futures, fixed income, forex and equities.
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