With Hurricane Harvey wreaking havoc in the southern United States, one might think that insurance companies are a sector for investors to avoid right now.
Yet that is not the case with this week’s Momentum Trader Alert recommendation, which traces its history back to the earliest years of the American Republic.
In fact, I can’t recall ever recommending a stock with an older history.
Founded in 1792 and headquartered in Bloomfield, Connecticut, Cigna Corporation (CI) is an investor-owned employee benefits organization in the United States. It provides health care products and services, group life, accident and disability insurance, retirement products and services and investment management. Cigna sells its products in 30 countries and jurisdictions, and has more than 95 million customers throughout the world.
Cigna’s stock has been hitting new all-time highs in the past month, propelled by better-than-expected second-quarter results and an increase in earnings guidance.
CIGNA Corporation (CI) versus the S&P 500 over six months
Momentum Trader Alert Analysis
Buy CIGNA Corporation (CI) at market today and place your stop at $170.00.
If you want to play the options, I recommend the CI November $185 calls (CI171117C00185000) which last traded at $5.05 and expire on Nov. 17.
Sell half of your ABBV November $70 calls for a 100% gain. Hold on to the rest of the options for potentially bigger gains ahead.
Expedia (EXPE) stopped out on Aug.28 at $142 for a 10.66% loss.
Nicholas A. Vardy