My Bad - HUMCQ

[BetonBeer]

I loaded up on 5 contracts last week for March Humana calls 85 strike @ 3.40 (it is at 1.70 as of now) I was trying to get in on its recent climb for a quick trade but I definetly got in at the wrong time. UNH had a good earnings report this week and I am expecting great results when HUM reports on the 2nd. Hopefully this will give the stock a good boost and I can salvage some of my money. Any input???

[netwrangler]

Originally Posted by BetonBeer

I loaded up on 5 contracts last week for March Humana calls 85 strike @ 3.40 (it is at 1.70 as of now) I was trying to get in on its recent climb for a quick trade but I definetly got in at the wrong time. UNH had a good earnings report this week and I am expecting great results when HUM reports on the 2nd. Hopefully this will give the stock a good boost and I can salvage some of my money. Any input???

HUM looks like a good company to me. The whole healthcare sector got hammered this week. HUM went down for no apparent reason, save that an ebbing tide lowers all ships.

As I see it, you have two ways to go:

1. Put in a limit order now to sell your options @ $3.50. You will need a stock price of around $82.20 tomorrow to get that price for your options. The stock price required will increase to around $83.20 by the time of the earnings announcement.
2. Hang in there to the earnings release on Monday, Feb 4th, and see if you can't make a profit. Again, you will need a price of ~$83.20 to get out of the options cleanly.

This is definitely your choice. I don't know what yur risk tolerance is, or how much a $700 loss [or so] would hurt. I do know that HUM was pushing $87 just last week. Sure the market is 'different' now, but HUM isn't. It still has very good fundamentals.

If I were the one to decide, I'd combine the two alternatives. I'd put in a limit order to sell the options a $3.80 or more. But I'd be ready to sell for less if the earnings didn't push the stock up enough.

The best thing you have going for you is that you have March, not February, options. That gives you time to let good things happen.

[BetonBeer]

Originally Posted by netwrangler

HUM looks like a good company to me. The whole healthcare sector got hammered this week. HUM went down for no apparent reason, save that an ebbing tide lowers all ships.

As I see it, you have two ways to go:

1. Put in a limit order now to sell your options @ $3.50. You will need a stock price of around $82.20 tomorrow to get that price for your options. The stock price required will increase to around $83.20 by the time of the earnings announcement.
2. Hang in there to the earnings release on Monday, Feb 4th, and see if you can't make a profit. Again, you will need a price of ~$83.20 to get out of the options cleanly.

This is definitely your choice. I don't know what yur risk tolerance is, or how much a $700 loss [or so] would hurt. I do know that HUM was pushing $87 just last week. Sure the market is 'different' now, but HUM isn't. It still has very good fundamentals.

If I were the one to decide, I'd combine the two alternatives. I'd put in a limit order to sell the options a $3.80 or more. But I'd be ready to sell for less if the earnings didn't push the stock up enough.

The best thing you have going for you is that you have March, not February, options. That gives you time to let good things happen.

Thanks for the advice!! Since I consider my option money my play money, I have decided to just hold onto it until close to the expiration. I know that it will go back up to 88 its just a matter of when. Hopefully in the next 60 days for my sake. No point in taking a loss right now with 2 months left on the contract. If it goes in the money Im buying the first round

[BetonBeer]

Hope I don't jinx it, but HUM is having a great day today, almost out of the RED!!!!!! With a good earnings report on the 2nd this should produce a nice little profit. :beerg lass: I'll drink to that!