Bull & Bear: The Hartford Financial Services Group, Inc. (HIG)

Shares of The Hartford Financial Services Group, Inc. HIG are trading higher on the session by 1.99%, at $27.64. With shares hovering on the 50-day moving average, you have to wonder where shares could move next… Bulls: The bulls will note that the stock made a high volume bottom in March and has been making higher highs and higher lows ever since. This clearly shows that bulls have been in control over the medium-term. If bulls can push shares through the $28.00-28.60 range, it is likely that traders pile into the name and push it towards its 52-week high, near $31.00. Bulls will also note that the 200-day and 50-day moving averages are up-trending and that the 20-day is trending toward that direction as well. A bullish trader could buy the June $28/30 call spread for a net debit of $0.64. You could enhance returns by also selling the June $24 put for a net credit of $0.20. Bears: The bears will note that the stock has had trouble around the $30.00 level twice within the past year. If HIG cannot regain that level soon, a double-top could be set in place, which could put continued pressure on shares in upcoming months. Bears will also note that, on the most recent pullback, shares have dipped below the prior break out level, at $28.00. This could be an early sign of a reversal. A bearish trader could buy the September $29/27 collar (buy the put, sell the call) for a net debit of $$0.46. This would be a cheap and highly levered way to play a longer-term down trend forming. The Hartford Financial Services Group, Inc. is an insurance and financial services company. The company maintains a retail mutual fund operation, whereby the company, through wholly-owned subsidiaries, provides investment management and administrative services to The Hartford Mutual Funds, Inc. and The Hartford Mutual Funds II, Inc., consisting of 52 mutual funds, as of December 31, 2010.