Yesterday's selloff in shares of Envision Healthcare (EVHC) is an "unwarranted overreaction" to "misleading headlines" regarding news that has been known for three weeks, Jefferies analyst Brian Tanquilut tells investors in a research note. The analyst sees the worst case scenario as UnitedHealth (UNH) to terminating its Envision Healthcare contract at year-end. However, it is important to note that Envision is unlikely to lose its UnitedHealth business even in that scenario as the company will merely move "out-of-network" with the payor, Tanquilut writes. Further, the analyst continues to expect Envision's strategic review to result in a sale. He keeps a Buy rating on the shares with a $46 price target.

Deutsche Bank analyst George Hill raised the firm's price target on UnitedHealth to $562 from $545 and keeps a Buy rating on the shares. The company reported a Q1 earnings beat with many moving pieces caused by the cyberattack on Change Healthcare, which left earnings quality and guidance up to investor interpretation, the analyst tells investors in a research note. The firm sees the full impact of the hack, as well as conservatism around cost trend and utilization would impact UnitedHealth earnings by only 2% for the full year.

Notable gainers among liquid option names this morning include Genuine Parts (GPC) $159.09 +15.03, Globe Life (GL) $66.97 +3.74, Anthem (ELV) $532.10 +23.13, United Continental (UAL) $50.59 +1.84, and UnitedHealth (UNH) $494.80 +15.81.

Unusual total active option classes on open include: Wrap Technologies (WRAP), AstraZeneca (AZN), JetBlue (JBLU), United Continental (UAL), Taiwan Semi (TSM), Nokia (NOK), EBay (EBAY), Maplebear Inc (CART), Airbnb (ABNB), and UnitedHealth (UNH).