Cigna Options Trading Insights: Current Market Dynamics
Understanding Recent Options Trading in Cigna
In the world of options trading, analysts have noticed a significant shift in the sentiment surrounding Cigna (NYSE: CI). The latest evaluations indicate a strong bearish outlook, as revealed by the analysis of unusual trades relating to this health insurance and pharmacy services provider.
Looking closely at the data, it appears that approximately 31% of traders have adopted a bullish outlook, while a majority, 68%, are bearish. Among the trades identified, 13 were puts accounting for a hefty value of over $1.3 million, compared to just 3 calls, amounting to approximately $247,758.
Examining Projected Price Targets
Analysts have focused on the volume and open interest reflected in these options contracts. The trend shows that significant traders, often referred to as 'whales,' have set their sights on pricing levels between $270.00 and $310.00 for Cigna in the past quarter. This range indicates the expected volatility in CI's stock price.
Volume and Open Interest Insights
The analysis of volume and open interest is crucial for traders engaging in options. Assessing these metrics provides valuable insights into the liquidity and overall interest surrounding Cigna's options at various strike prices. An overview of the recent trends indicates an evolving narrative around both call and put trades, highlighting the substantial options activity over the last month.
Recent Significant Options Activity
Recently, several noteworthy options trades were executed with various sentiments:
- Put Trade: Close to $713.3K in bearish sentiment targeting a strike price of $295.00.
- Call Trade: A bullish sweep was noted with an investment of $172.0K at a strike price of $300.00.
- Put Trade: Another bearish assessment valued at $90.7K, set for a strike price of $292.50.
- More Puts: Additional $88.1K trade earmarked for a strike at $310.00.
About Cigna
Cigna is a health services organization that excels in providing pharmacy benefit management and health insurance. Following its strategic merger with Express Scripts in 2018, Cigna has significantly amplified its specialty pharmacy and PBM services. Currently, their most substantial contracts are with the Department of Defense and major insurers like Centene. As of the latest figures, Cigna covers around 17 million members in the U.S. and 2 million internationally.
With a closer look at their operations, it becomes evident why analysts are focusing on Cigna's stock amidst the evolving market conditions.
Cigna's Market Position Today
- The stock is experiencing a trading volume of around 716,139 shares, with CI's price showing an increment of 0.89%, currently standing at $302.49.
- Recent analyses indicate that the Relative Strength Index (RSI) indicates a neutral position, keeping investors cautiously optimistic.
- Investors should prepare for the upcoming earnings announcement, which is expected shortly.
Expert Opinions on Cigna
Market sentiment remains robust as five respected analysts have weighed in on Cigna's future, projecting a consensus price target of $368.60. This shows a strong belief in the potential of the stock despite the headwinds faced with options trading.
Some recent expert assessments include:
- An analyst from Oppenheimer continues to endorse a target of $375.
- Another expert from UBS maintains a bullish outlook with a forecast of $390.
- Piper Sandler has slightly adjusted their target to $348 but retains their positive stance.
- Two analysts from Stephens & Co. and Cantor Fitzgerald uphold their Overweight ratings, recommending respective targets of $380 and $350.
Options trading carries inherent risks but also offers potential rewards. Astute traders must continually educate themselves, calibrate their strategies, and vigilantly monitor market dynamics.
Frequently Asked Questions
What is the current sentiment regarding Cigna's stock?
Recent analyses indicate a predominantly bearish sentiment among options traders, with 68% showing negativity towards Cigna.
What price range have analysts targeted for Cigna?
Analysts are targeting a price range between $270.00 and $310.00 for Cigna based on recent options trading activities.
How many members does Cigna cover?
Cigna covers approximately 17 million members in the United States and an additional 2 million internationally.
What was the market response to Cigna recently?
Cigna's stock recently showed an increase of 0.89%, priced at $302.49, with a trading volume of 716,139 shares.
Are there upcoming earnings announcements for Cigna?
Yes, investors expect an earnings announcement for Cigna in the near future, creating a sense of anticipation in the market.
About The Author
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