Coventry Health (NYSE: CVH) is recently trading at $32.10 in pre-open trading, below its close of $40.
CVH lowered EPS guidance because of a delayed recognition of higher medical costs.
Stifel Nicolaus says: "Maintain Hold rating as the managed care industry continues a period of transition prior to the 2008 election.
CVH July option implied volatility of 35 is near its 26-week average according to Track Data, suggesting non-directional price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com









