HIG - 100% Leap In A Single Day

Posted by Kris | Tuesday, December 09, 2008 | | 0 comments »

HIG leap 100% in a single day from USD8 to 16 bucks in a single day since it announced that its outlook forecast is higher for next year. And it has enough capital to withstand the ongoing turmoil. It was in my radar as I wanted to buy an put option since when it was ~USD32 and it downtrended to USD8 before this unbelievable leap upwards. I almost considered buying a put last few days, the only thing stopping me was the super duper thin open interest. And the stock itself average daily volume is very thin. So during the 100% leap upwards, the volume was very relatively high for this stock.

Here are the optimistic views.

Hartford Financial (HIG Quote - Cramer on HIG -Stock Picks) numbers raised at Morgan Stanley. Shares now seen reaching $21. Estimates also raised to reflect the company's strong capital position, reducing the likelihood of a capital raise. Overweight rating.