Copyright Notice

All contents of this blog are protected by copyright and may not be reproduced in any form without prior written consent from the author. Copyright 2010, 2011, 2012, 2013, 2014 Jawad Akhtar.

Monday, September 27, 2010

New Options Play - HIG

Hartford Financial Services Group (HIG)

I like the chart for HIG.  The stock fell below a support level but has now clawed back to the support tier.  The current chart pattern (weekly) is of a flag.  The daily pattern is of an upside down head and shoulder pattern (however, the price has not yet penetrated the neckline to the upside).  Combine those two patterns together and we could have a pretty nice rally if the stock manages to break to the upside and move towards a price of $28.00   I have decided to play this with Jan'11 at the money calls (22.50 - trading at 2.18 bid and 2.22 ask) and entered the position a few minutes ago at 2.22.

Of course, all options have an inherent risk of losing all your investment in it so you should only speculate if you can afford to lose the money.

No comments:

Post a Comment