Market analysis 12/10/21

Healthcare sector gainers/losers (mid/large cap)

Market status at 12:47PM ET:

  • SPY up 0.41%
  • XLV down -0.15%
  • XBI down -0.81%

Biggest gainer on the day is Centene (CNC +5%), a provider of managed care services in the US and three international markets. Today is Centene’s investor day and issued a press release offering guidance for 2022 which included diluted EPS of $4.04 – $4.23. Their 2020 diluted EPS was $3.12. 2021’s final EPS has yet to be announced, but with the lawsuit payout from their Medicaid fraud case, it seems unlikely they will get much over $2.50 EPS for 2021.

Centene’s March $70 puts have an attractive IV at around 34%. Might be worth a gamble.

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