NEW DIRECTIONAL PUT PLAYS
Humana Inc. - HUM - close: 64.39 change: -1.73
Stop Loss: 66.51
Current Option Gain/Loss: + 0.0%
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
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
Entry on November xx at $ xx.xx
Average Daily Volume = 3.0 million
Listed on November 27, 2012