UnitedHealth Group posts
FeedPosted Jan 22nd 2009 1:14PM by Brent Archer (RSS feed)
Filed under: Major movement, Earnings reports, Forecasts, Good news, Industry, Options, Technical Analysis
UnitedHealth Group (NYSE:
UNH -
option chain) shares have moved higher today after
the company reported a fourth-quarter profit of $726 million, or 60 cents per share. UNH's adjusted profit of 78 cents per share matched analysts' projections. The company also reaffirmed its 2009 earnings forecast of $2.90 to $3.15 per share. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on UNH.
UNH opened this morning at $25.44. So far today the stock has hit a low of $25.25 and a high of $27.30. As of 12:00, UNH is trading at $26.52, up $1.47 (5.9%). The chart for UNH looks neutral and
S&P gives UNH a 3 STARS (out of 5) hold ranking.
For a bullish hedged play on this stock, I would consider a March
bull-put credit spread below the $20 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 8.7% return in just two months as long as UNH is above $20 at March expiration. UNH would have to fall by more than 24% before we would start to lose money. Learn more about this type of trade
here.
UNH hasn't been below $20 since early in December and has shown support around $23.50 recently.
Brent Archer is an options analyst and writer at Investors Observer.
DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in UNH.
Posted Jul 22nd 2008 2:25PM by Sheldon Liber (RSS feed)
Filed under: Major movement, Good news, Rants and raves, Market matters, United Parcel'B' (UPS), , Serious Money, DJIA
Some may view the sun as rising while others see it setting. Before you send me your rant that the pain has just begun and I am foolish to believe the recent market upswing is anything but a short term reprieve, let me share a few thoughts.
Today
Wachovia Corp (NYSE:
WB)
reported a loss of $1.30 a share compared to the average analysts' guess of $1.27 a share. WB lost almost $9 billion, is cutting the dividend and will layoff 6,400 employees. All bad news
-- and still the the stock and the DJIA are up!
At the same time, oil is trading down about $4 a barrel during the busiest driving time of the year because people are actually conserving gas. The market is working. It should also be noted that after the Bush administration spent over seven and a half years stating various preconditions to establishing relations with Iran, last week they decided to send an envoy and start a dialog. It may be good or bad politics depending on your view
-- but it is only good for the stabilization of oil prices.Continue reading Serious Money: More signs the market has bottomed
Posted Jul 11th 2007 4:20PM by Tom Barlow (RSS feed)
Filed under: Bad news, Products and services, Competitive strategy
According to an
article in today's USA Today,
UnitedHealth Group (NYSE:
UNH)'s United Healthcare has created a health insurance program that charges overweight smokers up to two grand more per year for health insurance. The sin premium adds a stick component to the wellness program carrot.
This idea seems like one that could be dramatically expanded, too. Tying behavior to insurance costs could be a great way to rein in our burgeoning expenses. How about:
- Doubling collision coverage cost for cell-phone drivers, lipstick appliers, and chicken-nugget dunkers?
- Eliminating coverage of hearing aids for iPod users?
- Reducing the coverage of carpal tunnel surgery for text messagers and video gamers?
- Demanding a higher premium for skin cancer coverage from frequent beach-goers?
- Refusing to cover the cost of treating high blood pressure for golfers?
- Raising the premium for allergy treatments for farmers?
- Extending the copay for dentistry for those found to chew sugar gum, tobacco, or nougat?
- Charging more for dermatology visits for those who choose to depilate "down there"?
- Increasing the cost for hair transplants for those who choose to have multiple children?
Pay to play has become an American obsession, and it's only fair that each person covers the cost of his or her indulgence, right? The concept of accepting one another's imperfections, and willingly pooling our exposures so that we all can receive help when we need it - too 20th century?
Sanofi-Aventis (NYSE: SNY - option chain) shares are rising today after health insurer Unitedhealth Group (NYSE: UNH) announced that it would fully cover swine flu vaccinations, even for members that do not have immunizations typically covered. As one of the drugmakers that is producing a swine flu vaccine, SNY stands to benefit. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on SNY.
Why is gold making a new high, trading at $1,118.00 per ounce?
Chasing Value: Ten stocks for 2010 -- Part 1 
Closing Bell: A six-day rally (AIG, REGN, M, MOT, PALM, RIMM)
