4 Trade Ideas for Hartford Financial Services: Bonus Idea

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

Hartford Financial Services, $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

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.

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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 September Options Expiration and the FOMC meeting sees the equity markets showing strength, but building that wall of worry as they sit at prior highs, not breaking through them.

Elsewhere look for Gold to pullback in its uptrend while Crude Oil consolidates in the drift lower. The US Dollar Index is also continues to drift to the upside while US Treasuries continue lower. The Shanghai Composite is pausing in its new move higher while Emerging Markets look to continue higher.

Volatility continues to remain very low keeping the bias to the upside for the equity index ETF’s SPY, IWM and QQQ. The SPY and QQQ both sit on the cusp of new all-time highs after touching their tops but recoiling. The IWM also shows promise at the top of its long consolidation range. 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.

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