A bearish combination trade led Friday's option activity in health-care company Amedisys, which tumbled as Medicare said it would cut reimbursement rates.

More than 17,300 AMED options changed hands on Friday, compared to total open interest of just 11,221 and a daily average of 552 contracts in the last month. Almost all of the volume was one three-way spread.

optionMONSTER systems show that a trader bought 4,000 December 11 put for $1.64 and then sold 4,000 each of the December 8 puts for $0.49 and December 14 calls for $1.05. The volume at all three strikes was above the previous open interest, so this is a new position.

The trade cost just $0.10 and is bearish at least down to $8, with a risk of having to sell shares if they are above $14. This could also be a put spread collar , a protective position against long shares that costs very little but provides protection below that $8 level. (See our Education section)

AMED was down 12.69 percent on Friday to $11.60. It was as low as $9.51 right at the open and then recovered some from there.

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