UNH - How to trade this

Discussion in 'Stocks' started by gwb-trading, May 13, 2025.

  1. maxinger

    maxinger

    Slow snail-pace/Old news.


    Significant volume traded on
    21 Feb 2025
    17 Apr 2025

    On 18 Apr 2025, the $450 support level was broken decisively.


    So?
    Too late to short it because of this slow/old news.

    You can't long it as it is on the downtrend.
     
    Last edited: May 13, 2025
    #11     May 13, 2025
  2. Sekiyo

    Sekiyo

    Where were you on those dates?!
     
    #12     May 13, 2025
  3. maxinger

    maxinger

    upload_2025-5-14_6-22-37.jpeg
     
    #13     May 13, 2025
    Sekiyo likes this.
  4. Peter8519

    Peter8519

    I saw a post earlier that UNH at $450 is a good buy. Now, the CEO quit and former CEO taking over. Is this a good sign?
     
    #14     May 13, 2025
  5. maxinger

    maxinger


    This thread is better.
    It reported vol change on 20 Apr 2025, 3 days after a major event.

    UNH vols after report
     
    #15     May 13, 2025
    spy likes this.
  6. newwurldmn

    newwurldmn

    the OP of that thread is one of the smartest traders here.
     
    #16     May 13, 2025
    TrailerParkTed and nbbo like this.
  7. mervyn

    mervyn

    wake me up at 185
     
    #17     May 13, 2025
  8. cesfx

    cesfx

    I am genuinely curious, as a client, what can really happen with an account number?

    Is it enough to cause headaches with stuff like 2FA and brokers asking tricky questions like your last deposit or active trade on, before giving you permissions to trade? Forget about withdrawing...
     
    #18     May 14, 2025
    spy likes this.
  9. gwb-trading

    gwb-trading

    Just to provide some more insight. My stop loss is down at $306.68. The hard profit target is $352.12 (sell order set) and soft profit target is $348.23 (manually watched). The max trade period is until 5/21 at which point the trade will be closed out no matter where it is at. Of course, if further UNH news or odd market conditions appear then I may potentially close out immediately (but this scenario is unlikely IMO).

    Normally I would consider a "rebound dip" trade like this when the stock had firmly dropped below the two standard deviation lower Bollinger band as an entry point which is down around $305. This means I jumped the gun effectively on this trade, making it higher risk. Simply because -- unless more bad news comes out in the next seven days -- I do not believe this UNH will hit $305 in the short term. Thus take the higher risk set-up or pass on the trade. In hindsight - I probably will be saying (shortly) that I should have passed on the trade; even if it lands up profitable.

    I will note from a fundamentals perspective that valuations for UNH support a higher price than $350 in the longer term -- which will drive some buying pressure from investors including institutions on this dip. Coupled with this is correlation with other stocks in the sector such as Humana.

    Usually when I target a stock trade -- it is within a single day -- however for these "rebound dip" situations I make an exception and hold for overnight periods.
     
    #19     May 14, 2025
    nitrene and demoncore like this.
  10. mervyn

    mervyn

    Last edited: May 14, 2025
    #20     May 14, 2025