Elevance Health Shares Rally 2.6% as 0.63B Volume Ranks 166th in Market Activity

On August 7, 2025, Elevance Health (ELV) closed at $282.91, surging 2.60% with a trading volume of 0.63B, ranking 166th in market activity. The stock traded within a $278.20–$284.00 range, reflecting renewed institutional interest amid broader healthcare sector declines.

The rally was driven by Cantor Fitzgerald’s recent overweight rating and increased institutional holdings from firms like Suvretta Capital Management. Despite sector-wide challenges—such as Medicare Advantage contraction—Elevance’s 8.11x dynamic P/E ratio, significantly below its 52-week high of $567.26, positioned it as a potential undervalued play. Technical indicators showed the price near Bollinger Band lower bounds ($244.79) and an RSI of 37.24, suggesting oversold conditions.

Options activity highlighted short-term volatility. The ELV20250815C280 call option, with 36.61% implied volatility and moderate leverage, offered exposure to a potential breakout above $280. Meanwhile, the longer-dated ELV20250919C290 call, with lower time decay, catered to cautious investors. Both contracts reflected elevated gamma and liquidity, aligning with the stock’s mixed technical outlook.

Backtesting revealed a 166.71% return from 2022 to present for a strategy purchasing top 500 high-volume stocks and holding them for one day, outperforming the benchmark by 137.53%. This underscores the role of liquidity concentration in capturing short-term momentum, particularly in volatile markets.