Hum value swing

10月4日

I like to categorize my swing trades into sections. For longer term trades I like to buy 6 month or LEAP calls. In this case I believe Hum has fallen below intrinsic value fairly decently. I look to fill the gap at 278$ for my first target. The company is doing fine, revenues continue to grow, margins remain low but this is health insurance. I expect a full recovery of the entire massive candle around 350$ within the next 6-8 months.

My plan:

260$ Calls 6 months out
300$ Calls 18 months out

PT1= dashed green the GAP on the daily
PT2= 358$ hitting that second fib