Schaeffer's Top Stock Picks for '25

Why This Dow Name is the Perfect Pick for Bulls

It looks like the perfect time to pick up premium on UNH

Jan 22, 2020 at 11:24 AM
facebook X logo linkedin


The shares of insurance giant UnitedHealth Group Inc (NYSE:UNH) appear to be setting up nicely for an upside move. The stock is carving out a bullish flag pattern, suggesting it's in good shape to add to its three-month rally of roughly 22%. Plus, there's currently familiar support in play from the 40-day moving average, which has been bullish for the shares in the past.

UNH stock jan 17

Making this trade even more attractive is the fact that UNH's implied volatility levels are relatively low right now, since we're just days from the company's earnings beat. By the numbers, the equity's 30-day at-the-money implied volatility of 18.5% ranks in just the 6th annual percentile. Not to mention, the security's Schaeffer's Volatility Scorecard (SVS) comes in at an elevated 95, showing a tendency to make bigger-than-expected moves.

What's more, UnitedHealth's Schaeffer's put/call open interest ratio (SOIR) of 0.89 ranks in the 94th annual percentile, and a steady rise in this reading has tended to coincide with technical strength from the stock in the past. Our recommended call has a leverage ratio of 12.7, and will double on a 7.4% increase in the underlying security.

Subscribers to Schaeffer's Weekend Trader options recommendation service received this UNH commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

 
 

You have the chance to join one of Bernie's most exclusive programs, complete access at HUGE savings!

As we prepare for a new administration to take the reins in Washington, the near-term market landscape is rife with uncertainty.

The Federal Reserve has already hinted at the turbulence ahead, lowering its interest rate outlook for 2025.

Meanwhile, breakthroughs in artificial intelligence (AI), quantum computing, and other transformative sectors have unlocked incredible profit potential.

But these opportunities are fleeting, and timing is everything. That's where Quick-Hit Trader comes in.

Quick-Hit Trader is designed for precision and speed, getting you in and out of the market in a flash. While other investors scramble to navigate volatile conditions, you'll have access to expertly curated trades that leverage these rapid shifts to deliver explosive profits in short order.

This is your chance to capitalize on the fast-moving market like never before. Are you ready to make your move?

 

 

(function(doc, script) { var js, fjs = doc.getElementsByTagName(script)[0], frag = doc.createDocumentFragment(), add = function(url, id) { if (doc.getElementById(id)) {return;} js = doc.createElement(script); js.src = url; id && (js.id = id); frag.appendChild( js ); }; // Google+ button //add('https://apis.google.com/js/platform.js', async="defer"); // Facebook SDK add('//connect.facebook.net/en_US/all.js#xfbml=1&appId=772755279557744', 'facebook-jssdk'); // Twitter SDK //add('//platform.twitter.com/widgets.js', charset='utf-8'); fjs.parentNode.insertBefore(frag, fjs); }(document, 'script'));