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Bonawyn Eison Sees Unusual Options Activity In UnitedHealth

On CNBC's "Options Action," Bonawyn Eison spoke about unusually high options activity in UnitedHealth Group Inc (NYSE: UNH), which is scheduled to report earnings Wednesday, before the market open.

· 10/14/2020 07:19

On CNBC's "Options Action," Bonawyn Eison spoke about unusually high options activity in UnitedHealth Group Inc (NYSE:UNH), which is scheduled to report earnings Wednesday, before the market open.

Calls and puts were evenly distributed on Tuesday, but the options volume was twice the average daily options volume. The options market is implying a 3% move in either direction until the Friday expiry and an 11% move until the December expiry. The stock moves around 4% on earnings.

During the session, Eison noticed a sale of 1,000 contracts of the December $300 puts for $7.80. The trade breaks even at $292.20 or almost 12% below the current stock price.