More bad news out for United Health Group today. The CEO steps down for "personal reasons" and guidance is suspended. Makes everyone wonder if more bad news is forthcoming. For example, was the CEO sent packing for creative accounting? What else will come out over the next 1 weeks. The downside hit has spread to others in the sector such as Humana which is down nearly 7% today. However the fears related to Medicare Advantage plan costs seems to be overblown according to many industry analysts. Healthcare insurance is still basically a money machine in the U.S. This come back to the question of how to trade this -- with a near 15% drop today, UNH is nearing 2 standard deviation lower Bollinger bands, etc. on the chart. Is a snap-back due or will this decline simply gain speed. If you were setting up a multi-day trade -- which direction (long or short) and the reasoning behind it?
Yearz ago when I used to love shorting (and losing), I found that disaster stocks sometimes stop at 50% decline, and there happens to be a consolidation zone there from 2019-2020. A brave buyer might step in at around $250:
With all these new gen z traders coming in and having never experienced a down market for more than a few weeks will probably in about 15 yrs enact a rule for circuit breakers on individual stocks ....
I agree with mark. It is unreasonable to talk about stocks on a trading website. we should talk about arbing bentlies instead and be making up stories about making 18 billion dollars selling calls.
BTW -- I went long at $317.64 earlier today in my trading account. I will note that I already hold UNH as a dividend stock in my IRA account. It was purchased back in 2011 so my yield on cost is 16.8%
Looking for a multi-day trade. I have a stop loss target and a close out profit target. We will see how it goes.
Has there ever been a contract that went up more than the May 2025 UNH 270 puts? Not a bad day's work --> 400,000%