Schaeffer's Option Blog: CIGNA Corporation (CI) Captivates Back-Month Option Bettors

CINCINNATI--(Business Wire)--
CIGNA Corporation (NYSE: CI) was popular in the options pits on Wednesday, as
traders place their bets ahead of the healthcare issue's date in the earnings
confessional on Thursday, July 30. According to data from WhatsTrading.com, the
security saw nearly 12,000 calls cross the tape, almost quadrupling its average
daily volume of about 3,100 contracts. On the flip side, the equity saw roughly
12,500 puts change hands, more than five times its average single-session volume
of fewer than 2,400 contracts.

Digging deeper into the data, the August 25 strike was most active among both
the bulls and bears yesterday. In fact, it appears that an option player may
have initiated a short straddle on CI. At 10:47 a.m. Eastern time, several
blocks totaling 10,000 August 25 calls and 10,000 August 25 puts changed hands
for $1.85 and $2.60, respectively. Assuming the blocks were both sold, the play
was established for a net credit of $4.45, which is the most the trader stands
to gain with this strategy.

To continue reading this article, click here:
http://www.schaeffersresearch.com/marketcenters/optionscenter/default1.aspx?id=93982&source=businesswire

Schaeffer's Investment Research
Andrea Kramer, 513-589-3800
akramer@sir-inc.com

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