Veteran Trader Suggests Selling Puts on UnitedHealth (UNH)
Using an idea proposed by Prosper Trading Academy CEO Scott Bauer, traders can profit from UnitedHealth (UNH) staying around its current levels, Bauer said on Schwab Network recently.
During the same segment, Rick Ducat, Schwab's Lead Market Technician, analyzed the technical status of UNH.
A senior healthcare professional giving advice to a patient in a clinic.
Bauer's Trading Idea
Traders should look into selling the $420 puts that expire on May 2 and selling the $430 puts that expire on the same day, Bauer said.
Bauer is carrying out the trade partly because he expects UNH to stay around the $430 level, he noted. Additionally, the trader reported that the deal nets traders about $4 of premiums. The breakeven mark on the trade is $426, he noted.
Bauer is looking to buy the shares around $425.
UNH Is Closing in on "Oversold" Levels, Ducat Reports
UNH recently reached new lows, but its Relative Strength Index, closing in on 30, is "shifting towards the oversold area," Ducat stated.
On the other hand, the shares are way below the moving averages tracked by Ducat, which are around $530. The technical analyst cited $490 and $530 as important upside areas to keep an eye on.
While we acknowledge the potential of UNH, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than UNH but that trades at less than 5 times its earnings, check out our report about this .
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
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