NEW DIRECTIONAL PUT PLAYS

Humana Inc. - HUM - close: 68.84 change: -1.26

Stop Loss: 70.25
Target(s): 63.50
Current Option Gain/Loss: Unopened
Time Frame: 3 to 6 weeks
New Positions: Yes, see below

Company Description

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

Annotated Chart:

Entry on September xx at $ xx.xx
Average Daily Volume = 1.8 million
Listed on September 12, 2012