eHealth Calls Hot After Big Price-Target Hike

SunTrust Robinson Humphrey's new target is double EHTH's current price

May 15, 2019 at 10:59 AM
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The shares of eHealth, Inc. (NASDAQ:EHTH) are higher today, after analysts at SunTrust Robinson Humphrey hiked their price target by 33% to $120 -- roughly double yesterday's close. What's more, the online health insurance exchange provider is attracting fresh option bulls, with EHTH call volume running hot already today.

eHealth shares were last seen 3.2% higher at $63.09. The equity took a spill in mid-April, following Senator Bernie Sanders' "Medicare for All" proposal, but subsequently rallied to an all-time high of $73.71 on April 26, following a strong earnings showing and upwardly revised forecast from the company. Since then, EHTH has cooled its jets, but remains nearly 65% higher year-to-date, and up more than 200% over the past year.

EHTH stock chart may 15

At last check, EHTH has seen nearly 650 call options cross the tape -- nearly exceeding its average daily volume of a little over 600 calls. For comparison, not even 30 EHTH puts have traded so far.

Most of the action has transpired at the May 60 call. Those buying the calls to open expect the eHealth stock to extend its journey north of $60 through the close on Friday, May 17, when front-month options expire.

However, today's appetite for bullish bets is just more of the same for EHTH. During the past two weeks on the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), traders have bought to open more than 18 calls for every put on the equity.

 

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