New Plays, Sunday, 02/06/2005
New Option Plays
by OI Staff
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Call Options Plays
Put Options Plays
Hartford Financial Srvs. - HIG - cls: 71.17 chg: +1.86 stop: 66.95
The Hartford is one of the nation's largest financial services and insurance companies, with 2004 revenues of $22.7 billion. The company is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; and business property-casualty insurance. (source: company website)
Why We Like It:
The IUX insurance index is on the verge of a significant breakout. Leading the way is HIG. Shares of HIG pushed through major historical, round-number, psychological resistance at the $70.00 mark on Friday. The move produced a new triple-top breakout buy signal on its P&F chart, which now points to a $102 target. We want to use the breakout as an entry point to target a run towards its highs near $78-80 dating back to fourth quarter of 2000.
We are going to suggest the March options although June options are available. We don't see a March 75 strike yet but there should be one available soon.
BUY CALL MAR 65 HIG-CM OI=1711 current ask $6.60
BUY CALL MAR 70 HIG-CN OI= 813 current ask $2.30
Picked on February 06 at $ 71.17
Change since picked: + 0.00
Earnings Date 01/26/05 (confirmed)
Average Daily Volume = 1.2 million