Centene Stock Showing Signs of Life After Revenue Beat

Core Insights - Centene Corp (NYSE:CNC) stock increased by 3.9% to $27.75 despite reporting an adjusted second-quarter loss of 16 cents per share, which was worse than the projected loss of 11 cents per share. However, revenue exceeded estimates, leading to a recovery in stock price after significant premarket gains [1] - The stock has been recovering from a 55% year-to-date deficit, primarily due to a 40% drop on July 1 when the company withdrew its 2025 forecast. The shares reached an eight-year low of $26.66 but are now testing the 10-day moving average [2] - Options trading activity has shown a strong preference for calls, with 83,508 calls purchased compared to 12,760 puts over the past two weeks, resulting in a call/put volume ratio of 6.53, indicating high call buying activity [3] - Recently, there has been a shift towards puts, with 58,000 puts traded, which is 26 times the average intraday volume and more than double the number of calls. The September 22.50 put is particularly popular, suggesting some traders may be hedging against potential declines [4] - Short interest has increased by 26% in the last two reporting periods, indicating growing bearish sentiment amidst the stock's technical challenges [4]