NEW DIRECTIONAL CALL PLAYS
Cigna Corp. - CI - close: 48.42 change: +0.84
Stop Loss: 46.95
Current Option Gain/Loss: Unopened
Time Frame: up to the early May earnings report.
New Positions: Yes, see below
Why We Like It:
Shares of CI have spent eight months building a base in the $40-47 range. Now the stock is bouncing from support at prior resistance. This looks like a new bullish entry point to buy calls. I want to see a little more confirmation.
Use a trigger at $48.75 as our entry. We'll start with a stop at $46.95. The $50.00 level is short-term resistance but we're aiming for $52.50. Aggressive traders could use the April calls, which expire in six trading days. I am suggesting the May calls.
FYI: The Point & Figure chart for CI is bullish with a $60 target.
Trigger @ $48.75
- Suggested Positions -
buy the May $50 call (CI1219E50) current ask $0.94
Entry on April xx at $ xx.xx
Earnings Date 05/03/12 (confirmed)
Average Daily Volume = 3.0 million
Listed on April 12, 2012