NEW DIRECTIONAL PUT PLAYS

Humana Inc. - HUM - close: 64.39 change: -1.73

Stop Loss: 66.51
Target(s): 60.25
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below

Company Description

Why We Like It:
Healthcare stocks were some of the market's worst performers today and HUM underperformed many of its peers with a -2.6% decline. Investors are concerned following comments from industry executives who are worried about rising costs.

HUM had been hovering near support at $65.00 but unable to breakout over short-term resistance at the simple 10-dma. Now HUM has broken down and the next level of support is $60.00.

I am suggesting bearish positions now. Our target is $60.25.

- Suggested Positions -

buy the DEC $65 PUT (HUM1222x65) current ask $1.90

Annotated Chart:

Entry on November xx at $ xx.xx
Average Daily Volume = 3.0 million
Listed on November 27, 2012