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4 Trade Ideas for Hartford Financial Services: Bonus Idea

Published 09/16/2019, 07:43 AM
HIG
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Here is your Bonus Idea with links to the full Top Ten:

Hartford Financial Services Group (NYSE:HIG) started moving higher in January and has moved almost straight up. It has been one of those stocks that does not give many chances to enter. It pulled back to trend support last week and is now about to make another all-time high. The RSI is rising in the bullish zone with the MACD lifting higher and positive.

The Bollinger Bands® are running higher along with the parallel 20 and 50 day SMA’s. The 200 day SMA is smiling at you as it lifts higher too. There is no resistance above 60.75. Support lower comes at 59.50 and 58.85 then 58. Short interest is low a 1.0%. The stock pays a dividend with an annual yield just under 2%. It has been trading ex-dividend since August 30th. The company is expected to report earnings next on October 23rd.

The September options chain shows highest open interest at the 60 call, with spikes at the 57.50 and 61 strike puts. October options have biggest open interest at the 45 and 60 calls with little bits on the put side. The October 25 Expiry options are the first to cover the earnings report, but have just been open 2 weeks and have little activity. December options are the first with good liquidity to encompass the earnings report and they show biggest open interest at the 60 call.

Hartford Financial Services, Ticker: $HIG

Hartford Financial Services Daily Chart

Trade Idea 1: Buy the stock on a move over 60.75 with a stop at 59.

Trade Idea 2: Buy the stock on a move over 60.75 and add an October 4 Expiry 60.50/58.50 Put Spread (75 cents) while selling the December 65 Calls (62 cents).

Trade Idea 3: Buy the October 25 Expiry/December 65 Call Calendar (40 cents).

Trade Idea 4: Buy the December 55/65 bull Risk Reversal for 10 cents.

Disclaimer: The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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