Spotlight on McKesson: Analyzing the Surge in Options Activity

Author: Benzinga Insights | June 06, 2024 01:46pm

Financial giants have made a conspicuous bullish move on McKesson. Our analysis of options history for McKesson (NYSE:MCK) revealed 9 unusual trades.

Delving into the details, we found 66% of traders were bullish, while 11% showed bearish tendencies. Out of all the trades we spotted, 4 were puts, with a value of $265,360, and 5 were calls, valued at $238,540.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $500.0 and $660.0 for McKesson, spanning the last three months.

Volume & Open Interest Trends

In today's trading context, the average open interest for options of McKesson stands at 102.4, with a total volume reaching 363.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in McKesson, situated within the strike price corridor from $500.0 to $660.0, throughout the last 30 days.

McKesson Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
MCK	PUT	SWEEP	BULLISH	11/15/24	$14.4	$12.1	$12.1	$540.00	$129.8K	33	140
MCK	PUT	TRADE	BULLISH	08/16/24	$79.5	$75.1	$75.1	$660.00	$67.5K	0	1
MCK	CALL	TRADE	BULLISH	08/16/24	$56.4	$53.1	$55.2	$540.00	$55.2K	196	40
MCK	CALL	TRADE	NEUTRAL	08/16/24	$56.0	$52.3	$54.5	$540.00	$54.5K	196	10
MCK	CALL	TRADE	NEUTRAL	08/16/24	$55.5	$51.9	$54.0	$540.00	$54.0K	196	10

About McKesson

McKesson Corp is one of three leading pharmaceutical wholesalers in the us engaged in sourcing and distributing branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospitals networks, and healthcare providers. Along with Cencora and Cardinal Health, the three account for over 90% of the us pharmaceutical wholesale industry. Outside the us market, McKesson engages in pharmaceutical wholesale and distribution in Canada. Additionally, the company supplies medical-surgical products and equipment to healthcare facilities and provides a variety of technology solutions for pharmacies.

In light of the recent options history for McKesson, it's now appropriate to focus on the company itself. We aim to explore its current performance.

McKesson's Current Market Status

• Trading volume stands at 205,048, with MCK's price up by 0.83%, positioned at $584.42.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 55 days.

What Analysts Are Saying About McKesson

5 market experts have recently issued ratings for this stock, with a consensus target price of $629.8.

• An analyst from Evercore ISI Group has decided to maintain their Outperform rating on McKesson, which currently sits at a price target of $600.
• An analyst from Baird persists with their Outperform rating on McKesson, maintaining a target price of $671.
• An analyst from TD Cowen persists with their Buy rating on McKesson, maintaining a target price of $652.
• An analyst from Barclays persists with their Overweight rating on McKesson, maintaining a target price of $596.
• Consistent in their evaluation, an analyst from UBS keeps a Buy rating on McKesson with a target price of $630.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for McKesson with Benzinga Pro for real-time alerts.

Posted In: MCK