4 Trade Ideas for Cigna: Bonus Idea

• Posted by Greg Harmon
• on June 12th, 2023

Here is your Bonus Idea with links to the full Top Ten:

Cigna, $CI, comes into the week moving up towards resistance and the gap from March. This battle between buyers and sellers is taking place at the 50% retracement of the post pandemic move higher. The Bollinger Bands® are flat, neutral. The RSI is poking into the bullish zone on this third attempt with the MACD moving into positive territory. There is resistance at 269 and 276.50 then 282.50 and 287 before 293.75 and 300. Support lower comes at 263 and 254. Short interest is low at 1%. The stock pays a dividend with an annual yield of 1.85% and started trading ex-dividend on June 6th.

The company is expected to report earnings next on August 2nd. The June options chain shows the biggest open interest at the 280 and 250 then 260 strikes on the put side and at the 280 strike then 250, 260 and 270 on the call side. In the July chain it builds from 260 to a peak at 240 then tails to 230 on the put side. On the call side it is spread from 250 to 310, biggest at 310 then 260. Finally in the October chain open interest is largest at 230 then 210 and 195 on the put side, and focused at 280 on the call side.

Cigna, Ticker: $CI

Trade Idea 1: Buy the stock on a move over 270 with a stop at 260.

Trade Idea 2: Buy the stock on a move over 270 and add a July 260/240 Put Spread ($3.85) while selling the October 300 Call ($4.60).

Trade Idea 3: Buy the July/October 280 Call Calendar ($8.55) while selling the July 240 Put ($1.15).

Trade Idea 4: Buy the October 240/270/290 Call Spread Risk Reversal ($3.00).

Premium Content

The Best

The Rest Premium

Free Content

The Rest

If you like what you see sign up for more ideas and deeper analysis using the Get Premium button above.   

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 heading into the June Options Expiration and the FOMC meeting, noted equity market strength as a change of leadership with rotation into the Large Caps and Small Caps at the expense of Tech names, but not sinking Tech stocks.

Elsewhere look for the supporting cast to remain in consolidation. Gold looks to continue its consolidation in a pullback while Crude Oil consolidates in a broad range. The US Dollar Index looks to pullback in consolidation while US Treasuries churn sideways. The Shanghai Composite looks to continue in a short term consolidation while Emerging Markets consolidate in a tight range.

The Volatility Index looks to remain very low and stable making the path easier for equity markets to the upside. Their charts look strong, especially on the longer timeframe. The SPY joined the QQQ with a move over the August 2022 high, both at the highest level in over a year, and the IWM rising out of consolidation. On the shorter timeframe the QQQ has moved to consolidation in the uptrend while the SPY and IWM continue higher. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

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.

blog comments powered by Disqus