Buy United Healthcare June 16, 2017 165 Call up to $5

By Joe Duarte • February 17, 2017

I am recommending the purchase of United Healthcare June 16, 2017 165 Call (UNH_170616100C16500) up to $5.

United is the largest health insurer in the U.S. The stock has fallen in sympathy with Molina Healthcare (NYSE: MOH) as the latter missed its Q$ earnings and announced that it is likely to leave the Affordable Healthcare Act (ACA) marketplace. I don’t believe UNH is at risk of big losses from the ACA at this point, since it has already begun to remove its association with the program. I’ll have more on UNH and MOH in next week’s BTP Weekly.

I have a position in UNH.

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greenmaster

02/21/17 ‐ 5:25am ET February 21, 2017 at 5:25am ET

I need 2 check and make sure this is the right stock to buy calls? Stock is down $6 so far today. Maybe a Put Play is warranted instead? Or, at least for now avoid this stock until things turn around. please advise. Thanks.

Joe Duarte

02/21/17 ‐ 8:04pm ET February 21, 2017 at 8:04pm ET

Sorry for late reply.

UNH shares rallied on 2/21 and the option play rallied as well. The recommended option closed below the $5 entry limit.

Joe Duarte

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About The Author

Joe Duarte

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Dr. Joe Duarte is Chief Investment Strategist and Editor of Profit Catalyst Alert and Weekly Cash Machine. He has been a professional investor and independent analyst since 1990. He is a former Registered Investment Advisor and author of the Bestselling "Options Trading for Dummies," now in its 4th edition and several other books including "Market Timing for Dummies" and "Successful Biotech Investing". Although Joe's favorite areas of the market are technology and healthcare, he is a versatile investor who enjoys finding that hidden gem stock before the crowd, no matter what the sector. He is an original CNBC Market Maven, and is visible regularly on Stockcharts.TV. He has published articles on Marketwatch.com and has been widely quoted in the major media including The Wall Street Journal and Barron’s magazine.