4 Trade Ideas for Humana: Bonus Idea
Humana, $HUM, comes into the week trying to round out a bottom. It has a RSI rising up from oversold with the MACD about to cross up but negative. There is resistance at 331 and 336 then a gap to fill to 340 followed by 350 and 260. Support lower is at 316 and 309. Short interest is low at 1.9%. The stock pays a dividend with an annual yield of 1.11% and begins trading ex-dividend today.
The company is expected to report earnings next on October 30th. The October options chain shows biggest open interest at the 290 then 310 and 305 put strikes. On the call side it is biggest at 320 and 330. In the November chain is it biggest at the 290 put and at 350 on the call side.
Humana, Ticker: $HUM
Trade Idea 1: Buy the stock on a move over 323 with a stop at 309.
Trade Idea 2: Buy the stock on a move over 323 and add an October 315/300 Put Spread ($5.80) while selling the November 375 Call ($5.60).
Trade Idea 3: Buy the October/November 340 Call Calendar ($7.50) while selling the October 297.50 Puts ($7.60).
Trade Idea 4: Buy the November 290/320/345 Call Spread Risk Reversal (30 cents).
If you like what you see sign up for more ideas and deeper analysis using this Get Premium link.
After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with only 1 trading day left in the 3rd Quarter of 2024, saw equity markets looking positive.
Elsewhere look for Gold to continue its uptrend while Crude Oil continues to be biased to the downside. The US Dollar Index continues to drift to the downside while US Treasuries remain on the edge of a reversal to an uptrend. The Shanghai Composite looks to continue the stimulus fueled move higher while Emerging Markets begin a new uptrend.
The Volatility Index looks to remain low and stable making the path easier for equity markets to the upside. Their charts look strong, especially on the shorter timeframe with the SPY, IWM and QQQ all biased to move higher. On the longer timeframe both the QQQ and SPY also look better to the upside while the IWM has some work to do to get through resistance. Use this information as you prepare for the coming week and trad’em well.

















