NEW DIRECTIONAL PUT PLAYS
Humana Inc. - HUM - close: 68.84 change: -1.26
Stop Loss: 70.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below
Why We Like It:
It looks like the big oversold bounce in this healthcare stock has finally run out of gas. Shares reversed on Monday. The stock spent Tuesday's session trying to hold support near $70 and the 50-dma but today HUM collapsed again. I want to see a little bit more confirmation.
I am suggesting a trigger to buy puts at $68.50. Our initial target is $63.50.
Trigger @ 68.50
- Suggested Positions -
buy the Oct $65 PUT (HUM1220v65) current ask $0.95
Entry on September xx at $ xx.xx
Average Daily Volume = 1.8 million
Listed on September 12, 2012