Option Bears Swat Constellation, UHS

tdp2664
InvestorPlace
Options trading investors this morning are getting tired of two stocks that haven't been able to move above their price resistance levels. Utility Constellation Energy (NYSE: CEG ) has been trapped around $33 since late September. The company has struggled over the last year, and its last earnings report on Feb. 4 missed expectations as costs rose while revenue was weak. Its next earnings report is scheduled for May 6. OptionMONSTER’s Depth Charge tracking system detected the purchase of 4,750 CEG July 25 Puts for $0.15 and the sale of an equal number of CEG July 30 Calls for $3.35. Volume was more than twice open interest in both strikes. The bearish option trade, known as a collar, pushed total options volume in the stock to 14 times greater than average so far today. The transaction resulted in a credit of $3.20. The investor essentially locked in a maximum exit price of $33.20 on the shares, which he will collect as long as CEG closes above $30 on expiration. Find more option analysis and trading ideas at Options Trading Strategies . Also in options trading , hospital and health center operator Universal Health Services (NYSE: UHS ) is drawing short-term bearish trades as it nears key technical levels. UHS is down to $46.35 after briefly dipping below its 50-day moving average early in the session. UHS shares have run higher since last summer but have fallen sharply this month and are sitting just above a support level that has been in place since late February. More than 3,500 UHS April 45 Puts have traded today against open interest of 1,274, according to optionMONSTER’s Depth Charge system. The contracts changed hands in a strong buying pattern for $0.30 and $0.33. There doesn't appear to be related stock activity coinciding with these puts today, though they could have been bought as protection on an existing long position. The trader could also be making a straight bet that UHS will drop about 4.5% before the options expire at the end of tomorrow’s session. The company is scheduled to report quarterly results on April 25. optionMONSTER ® provides stock market insight, option trade ideas, and options education to meet the needs of do-it-yourself investors.