UNH is fresh off a record high last Thursday
Last week, with the help of Schaeffer's Senior Quantitative Analyst Rocky White, we broke down the best S&P 500 stocks to own in June over the past 10 years. Just two Dow stocks made the list, the best being UnitedHealth Group Inc (NYSE:UNH), which is a welcome sign for a red-hot stock boasting a 22.8% quarterly gain.
More specifically, looking back over the last decade, United Health stock boasts an average June return of 3.1%, with nine out of 10 returns positive. As previously mentioned, that's good for best blue chip on the list, and sixth-best in the healthcare
sector.
Breaking down UNH even further, the stock was last seen trading at $306.31 today, and just came off its seventh consecutive daily win. The shares are six days removed from a May 28 record high of $309.66, with their 30-day moving average emerging as solid
support in the last month.
In the options pits, puts hold a distinct advantage. UNH's 10-day put/call volume ratio of 1.15 at the International Securities Exchange (ISE), Cboe Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) sits four percentage points from an annual high. And echoing
this, the security's Schaeffer's put/call open interest ratio (SOIR) of 1.12 ranks in the 88th percentile of its annual range, implying short-term options traders have rarely been more put-biased.
Whatever the motive, near-term UNH options can be had for a bargain at the moment. The security's Schaeffer's Volatility Index (SVI) stands up at 30%, in the 15th percentile of its annual range. This indicates that now is an attractive time to jump aboard
the blue chip with options.