Trade sees Tenet holding support
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)