Karpel’s Corner: $WLP bounces onto radar for July expiration cycle

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and  never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

$WLP bounces onto radar for July expiration cycle; look to buy on weakness

Wellpoint Inc. ($WLP) hit our radar for conservative bounce play into the July expiration cycle. Our risk assessment reflects $WLP’s leadership in the highly fragmented managed care market. We believe that its geographic, market and product diversity and Blue Cross/Blue Shield tie are competitive strengths. However, we think its commercial enrollment growth going forward will be limited by heightened competition amid the difficult economic environment. But it should see meaningful Medicare and Medicaid enrollment growth, with the latter benefiting from the acquisition of Amerigroup. We see a conservative bullish vertical strategy could work well into the July expiration. If you are a Tradespoon subscriber you can see more specific ideas on the daily picks page. If you are not a subscriber, try us out today.  It only costs $1 to check us out for two weeks. Any questions, e-mail us at [email protected].

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