Latest news with #Ducat
Yahoo
24-04-2025
- Business
- Yahoo
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.
Yahoo
17-04-2025
- Business
- Yahoo
Schwab Network Unveils 'Example' Options Trade Involving NFLX
The Schwab Network recently discussed an "example" options trade involving Netflix (NFLX). According to the network, the trade is "neutral to bullish" and takes advantage of the stock's expected high volatility in the wake of its earnings. The company is expected to deliver its first-quarter results after the market closes today. Photo by Thibault Penin on Unsplash Rick Ducat, Schwab's Lead Market Technician, examined the technicals of NFLX stock. A Potential Options Trade Traders can sell the $900 put that expires on April 25 and buy the $875 put that expires on the same day, said Tom White, Netflix's Senior Options Contributor. Traders who follow the "neutral to bullish strategy" would collect net premiums of $5 and have an $895 break-even point, White reported. Ducat's Technical Analysis NFLX has pushed above its 21-day and 63-day moving averages, both of which are "around $934," Ducat said. Moreover, its Relative Strength Index has broken above 50, which separates high-momentum stocks from low-momentum ones, he reported. "The next area to watch" for NFLX is "around $1,000," Ducat said, adding that retaining the latter level could pave the way for it to reach $1,064, its all-time high. On the downside, key levels include $950, $934, and $825, with the latter point representing a "double bottom," Ducat stated. While we acknowledge the potential of NFLX, 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 NFLX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. 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. Sign in to access your portfolio
