picked up yet on your screen >>> then, health care is just one part of what all consumers need mike khouw looks at how to safely get bullish on all the other bear necessities >>> finally, meh-tah tony things the virtual world needs to come back to reality. it's time to risk less to make more "options action" starts right now. >>> all right. welcome, everybody thanks for joining us on a friday hope you had a great week and a good end to your week. we are not quite done yet. we've got a lot to do in the next 30 minutes. let's talk health care because while covid still gets all the headlines, let's not forget there are a lot of really bad things out there that medicine and science will need to treat and the health care sector is big, and it's also divided in terms of its winners and losers and types of companies tonight carter worth is highlighting one winner that you might not have even heard of yet. carter >> we thought we'd look at managed care stocks, not to say an unknown one, but we all think of united health care or anthem. i want to focus on sen teen, cnc. let's look at a couple char

just reversed its recent travel ban traders are betting that these stocks may hit an air pocket mike khouwade about 2.3 times the average daily put. that is largely the result of the purchase of the december 17 put spread the buyer of those bought over 4,000, spending about 75 cents contract to put it on, obviously betting they could fall below that higher strike that would put it between $19.75 that would represent a decline over there's 50 constituent stocks in there, excluding currencies, the top four collectively represent over 40% of it. >> mike khouw, thank you very much bonawyn, what say you? are you a buyer? >> no. i like the trade i like it better on a spread basis, particularly given the term of the trade. i think with the overhang, i can point to some of the balance sheets southwest, for example, in terms of names where i like to pick and choose, but generally speaking, you have these headwinds. we had this situation earlier when we had some of the workforce that weren't on strike i just think there's a lot of unknowns, particularly this time of year, and i would be staying away

mike khouw joins us now toic bra down all of the action hi there, mike >> hi, frank how are you? most of that activity was concentrated in the january 14th weekly expiration 24 1/2 strike calls and we saw one institutional buyer and a block of 4600 contracts trading for just over a dollar and overall more than 8500 all day and an average price of about $1.11. buyers of those calls are betting that the stock can rally from the bounce that it has recently experienced and rather than the expiration on the 21st and possibly the fact that the company is going to be presenting at a conference on january 11th that might be the catalyst this trader is looking for. >> mike khouw, great stuff as always i haven't been in anamerican eagle in a very long time. in general, whether it's this stock or the broader retail landscape, how are you feeling going into 2022? >> you know, i have less conviction about that as i do about this actual option trade so i'd like to focus there this at the money option with short term to maturity, this is textbook i think i know something now -- and i definitely

mike khouw will break down the move that's coming up next.ter this. issk for a long period of time? why would i miss work? i don't know. you could sprain your ankle, throw out your back... get hit by a school bus. or a regular bus. get kicked by a horse. fall off a ladder. bathtub mishap. polio. boating accident. stuck by a fork. rabies. wolves. scurvy. talk to us about disability income insurance today. feel comfortable about tomorrow. massmutual. small businesses like yours make gift-giving possible. feel comfortable about tomorrow. now, comcast business has an exclusive gift for you. introducing the gift of savings sale. for a limited time, ask how to get a great deal for your business. and get up to a $500 prepaid card with select bundles when you switch to the network that can deliver gig speeds to the most businesses. or get started with internet and voice for $64.99 per month with a 2-year price guarantee. give your business the gift of savings today. comcast business. powering possibilities. >>> welcome back check out cnbc's new next

picked up yet on your screen >>> then, health care is just one part of what all consumers need mike khouww to safely get bullish on all the other bear necessities >>

in the meantime, there was a lot of bullish options activity across health care today mike khouw is heren. >> we were looking at xlv. overall on the options market we saw slightly lower buyings, but not xlv. it traded ten times its average call involve today that was largely the result of some opening activity in the january 142, 147 call spread we saw it about an average of 85 cents. i suspect this may be pressuring a bullish bet, because we saw a lot of significant activity in the 131 calls, june, september and november, i think, someone is pressing their bullish bet here. >> mike, thank you very much b. bonawyn eison, what do you think? >> i think it plays into the barbell approach up and to the right. i'm a buyer. >> steve >> you know what's interesting to me, when you look at the xlv, up 23% or so year to date. i'm looking at the xpi and ipb i'm looking for the underperforming space, covid and pharmaceutical stocks, took the limelight. let's see if they can get something back together again. >>> all right. like getting the band back together for more options ac, be sure to do you kn

. >> let's get to mike khouw and see what is going on with the ark options. >> so we saw ark put out trading calls by about 3 to 1 and the top contracts were all short dates puts the most active were december 94 puts expiring at the end of the week trading tor about $1.22 and under 10,000 for $2.60 a contract buyers of those are putting that ark will continue to see weakness through the end of the week targeting a move of 5% or more to the down side. but i should say that etfs will see more puts trading than calls unlike single stock equities and the reason is that a lot of investors like to use etf to hedge their portfolio exposure. >> thank you for more "options action" tune in friday at 5:30. last question and i'll pose it to karen no music yet, please last question i'll pose to question forced cho choose for a three month trade and i know that is not your style, but for a three month trade, long or short ark >> well i'm short igv so i would say short. they are highly correlated >> okay. guy, how about you >> i love the fact that you told them to stop play

mike khouw joins us to break down the action. ke >> hi there, frank overall, the options markets volumes were pretty light. the most active opening activity that was taking place there was the january 85 strike calls. we saw buyers of those spending a little more than $1.90 a contract this recent spike could continue through the third week of january and they're looking for prices above $87 a share >> mike, really appreciate it. pete, i'm going to toss it over to you 191 for that option. were you a buyer there, was that a good price >> you know, i don't know, frank. i think the reality is the volume is still low, as mike pointed out. when we're looking at unusual option activity, oftentimes we're looking for huge volumes this isn't in the category of huge volumes as far as risk/reward, i would much rather be in the options after the huge move we saw on the stock out of this news potentially the stock could fall back to where it came from fairly rapidly after this news settles in and all the rest of it i would rather be in the opti

picked up yet on your screen >>> then, health care is just one part of what all consumers need mike khouw