NEW DIRECTIONAL PUT PLAYS
Cigna Corp. - CI - close: 76.44 change: -1.15
Stop Loss: 79.25
Current Option Gain/Loss: Unopened
Time Frame: 3 to 4 weeks
New Positions: Yes, see below
Why We Like It:
CI is in the healthcare industry. The company provides health insurance plans. The company reported earnings on February 7th and delivered a net profit of $1.39 a share, which was 10 cents below Wall Street's estimates. Revenues were a beat but management lowered their 2014 guidance. The stock plunged on this news and fell below potential support at $80 and its 200-dma (at the time at $78.22).
CI's oversold bounce has been unable to reclaim the 200-dma and CI appears to be rolling over. We are suggesting new bearish positions at the opening bell tomorrow morning. More conservative traders may want to wait for a new relative low under $75.00 before initiating positions. Our target is $70.50.
FYI: The Point & Figure chart for CI is bearish with a $63 target.
- Suggested Positions -
buy the MAR $75 put (CI1422o75) current ask $1.54
Entry on February -- at $---.--
Average Daily Volume = 2.6 million
Listed on February 19, 2014