U.S. health insurers attract bullish options bets

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Options traders are making bullish bets on health insurers ahead of a possible weekend vote on a U.S. bill that would overhaul the industry but is not expected to hurt profits as much as originally predicted.

Traders scooped up call options on Aetna Inc (AET.N), WellPoint (WLP.N) and UnitedHealth Group Inc (UNH.N), betting as much as a 10 percent rally in the stocks over the next couple months.

"Typically, traders buy on the rumor and sell on the news. In this case, it's the complete opposite," said Steve Claussen, chief investment strategist at online brokerage OptionsHouse.com in Chicago.

Leading up to the vote, the underlying shares fell on the prospect of legislation that would restrict profits. But now, investors have a good idea of what the bill contains and even if it is passed, "it's quantifiable and it's not uncertain. This is what the call buyers are banking on," Claussen said.

More: http://www.reuters.com/article/idUSTRE62I3YM20100319