Categories: Momentum Trader Alert HotlinesStock Market News

Betting on an Insurance Giant — and Booking Another Triple-Digit Option Gain

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

Recommendation

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.

Portfolio Update

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.

Sincerely,

Nicholas A. Vardy

Nicholas Vardy

Nicholas Vardy has a unique background that has proven his knack for making money in different markets around the world. He was the Editor of The Global Guru, a free weekly e-newsletter, and also edited the trading services Momentum Trader Alert, which focused on making short-term profits in the hottest markets in the world, and The Alpha Algorithm, which was designed specifically to deliver big, fast triple-digit winners, month after month. He was also the editor of Smart Money Masters, a monthly service focused on longer term investments recommended by the brightest minds in the business. Mr. Vardy has been a regular commentator on CNN International and the Fox Business Network. He has also published articles in The New Republic, The World and I, and The Baker & McKenzie Legal Review. The Global Guru/Nicholas Vardy has been cited in The Wall Street Journal, Newsweek, Fox Business News, CBS MarketWatch, Yahoo! Finance, and MSN Money Central. Mr. Vardy graduated from Stanford with a B.A. — with honors and distinction — in both Economics and History, and he also earned an M.A in Modern European Intellectual History. After winning a Fulbright Scholarship, he earned a J.D. degree at Harvard Law School where he was an editor of the Harvard International Law Journal. When not uncovering investment opportunities for his subscribers and investors, Mr. Vardy is a keep-fit enthusiast and an avid student of classical music.