Trader: Humana Will Stay Flat or Move Higher

While shares of Humana are relatively flat in a flat tape, Dan Passarelli of MarketTaker.com identifies a setup based solely on technical levels. The stock seems to be bouncing around $110, which Passarelli believes is a nice area of support and will sell credit put spreads. This strategy offers a 100% risk-controlled way of capturing premium and Passarelli essentially states he believes the stock will remain flat or move higher. Because of the hedge, your max gain/loss is identified at the onset.