Wells Fargo analyst Peter Costa believes the likelihood of Aetna (AET) getting an appeal for its case to buy Humana (HUM) from the Trump Administration's Department of Justice is "less likely at this point." Further investment based on the merger occurring is unwarranted, Costa tells investors after a judge sided with the Department of Justice in blocking the deal. The analyst believes, however, that both Aetna and Humana remain attractive investments without the merger. Today's news also suggests that the Anthem (ANTM), Cigna (CI) merger will have difficulties gaining approval since the issues for that deal "were even more significant and less well addressed," Costa contends. He points out that a failed Humana buyout will mean Molina Healthcare's (MOH) planned Medicare Advantage purchases will also not go through, meaning less potential upside to estimates, in his view. Humana is well off its lows and down only 29c to $200.24 while Aetna is afternoon trading is down $3.50 to $119.03.

Notable gainers among liquid option names this morning include UnitedHealth (UNH) $475.73 +30.10, Super Micro (SMCI) $914.90 +32.15, Humana (HUM) $324.54 +9.90, Morgan Stanley (MS) $89.42 +2.43, and Cencora Inc (COR) $238.39 +4.18.