UnitedHealth (NYSE: UNH) lowered FY 2008 EPS view to $2.95-$3.05 from $3.55-$3.60.
UNH says: "During the second quarter, our risk-based business produced a lower level gross margin than expected."
UNH July option implied volatility of 40 is above its 26-week average of 34 according to Track Data, suggesting larger price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
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