Cigna (NYSE:CI) has confirmed its upward trend after a temporary pullback. Such a bounceback is one of the most reliable buy signals, but you can also put your money to work with options to control more shares for less money.
Cigna also showed signs of being one of the few stocks every week that give signals strong enough to make them a candidate for profitable options trading. I’ve looked through the list of Power Stocks and picked out the most volatile and liquid trades.I’ve also taken stock price movement and theoretical option values into account, which yielded today’s trade of the day.
Recommendation: Buy CI June 70 Call options at $1.30 or lower. After entry, take profits if the stock price hits $71.60 or the option price reaches $3.10. Exit if the stock price closes below $66.30 or the option price falls to 70 cents.
Click here to receive the Trade of the Day in your inbox every day.
InvestorPlace advisor Ken Trester has launched Power Options Weekly. This brand new weekly service delivers 5 new trades to you each Friday. It’s the perfect ‘bridge’ between investing in ordinary stocks and the turbocharged world of options trading. Trester has been trading options since the first exchanges opened in 1973 with a winning streak that goes back to 1984 with money-doubling average annual profits since 1990. Try Power Options Weekly today and receive 2 weeks for the price of 1 for only $19.95.