Trade sees Tenet holding support

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Tenet Healthcare is basing out after a long decline, and one investor appears confident that support is in place.

THC rose 3.79 percent to $4.38 in late morning trading and is up 11 percent this month. The shares bounced after touching a 13-month low of $3.92 at the end of August. That price also marked a level where the stock peaked in June 2000, so some chart watchers may consider it long-term support.

The shares had traded over $6 in the spring, but then pushed lower and have been consolidating since. THC's last earnings report on Aug. 3 was slightly worse than expected.

Today's put selling reflects a belief the stock won't fall back below $4 before Oct. 15. The trade is in keeping with a common theme that has emerged over the last month as investors sell puts to earn income.

(Chart courtesy of tradeMONSTER)



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright © 2010 OptionMonster® Holdings, Inc. All Rights Reserved.


This article appears in: Investing , Options

Referenced Stocks: THC

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