6 Aug
on the 5Aug Options Action show, a viewer question was responded to about United Health.. here is the video clip
Both Carter and Tony agree that viewer should add to the position but dont offer an actual options trade to go with the show. they mention a high from april, the stock is about $15 off that high. here is my suggestion with the assumption you have at least 100 shares and expect it to move higher:
Buy the OCT 550 / 570 1x2 Ratio Spread. for near $300 credit.. buy one 550 and sell two 570s
The profit range for just the ratio spread is 550-590 at opex in Oct . but also the stock is increasing at same time so you are getting 2x from 550-570 .. the ratio technically doesnt start losing money until above 590 but your stock is gaining same time.. Good way to juice your returns if you are just a buy and hold investor like this caller. Plus you are entering for a credit so if stock is under 550 at opex, no harm no foul. Can do same trade if you have a Leap instead of 100 shares.. say the Jan2024 500 call for about $9900 vs $53500 for 100 shares.
