Humana Inc. is currently undergoing a correction after a long upward run that started in the early 2000s. The company completed a significant five-wave uptrend, finishing the bullish wave III cycle around 2022. Right now, Humana is in wave IV, which is showing an (A)-(B)-(C) correction pattern on the chart. Wave (A) saw a sharp decline, wave (B) had a partial recovery, and wave (C) is expected to finish the correction between the Fibonacci levels of 0.382 ($155.66) and 0.618 ($68.81). This correction area is typically where buyers step in, which could lead to a new upward movement. The stock is currently trading near $290, staying above the invalidation point of $4.76. This suggests the bullish trend could continue. Humana’s market position indicates it’s set to start rising again. The “Turning Up” note on the chart reinforces this expectation for the next bullish phase to begin. As of today, October 7, 2025, it looks like Humana (HUM) is nearing the end of its long corrective phase. We have been observing the stock’s decline since its peak in 2022, and this pattern implies a significant bullish turn is approaching. For those trading derivatives, it’s time to get ready for a major upward move in the upcoming weeks and months. With the stock price around $290, there’s a chance to prepare for the expected rally. One strategy is to buy call options that expire in early 2026, providing enough time for the new uptrend to develop. This approach offers upside potential while limiting risk to the amount paid for the options. The fundamental outlook aligns with this technical perspective. Recent data from September 2025 indicates that Medicare Advantage enrollment growth has surpassed expectations. This robust business strength lays a strong foundation for renewed investor confidence. Historically, strong enrollment numbers often lead to notable stock price increases for health insurers like Humana. For those with a more cautious approach, selling cash-secured puts with strike prices lower than current levels—around $200, for example—can be an effective strategy. The VIX, which measures market volatility, is currently high at 23 due to government shutdown worries, leading to elevated option premiums. This strategy allows for premium collection while setting a lower entry point if the stock dips one last time before rising. The overall market conditions also appear positive for shifting investments into defensive sectors like healthcare. With ongoing uncertainties in fiscal policy and weakness in the Dow Jones, investors are likely to seek safer options. This defensive trend should benefit Humana as it wraps up its corrective phase and begins its next big upswing.

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