Intermediate Term Trade Alert: UNH & CSCO


Sell Signal: UNH

Technically, this is a "Repeat" Sell in that UNH is still on its Sell from March 20. The then recommended May $240 Puts @ 4.50 climbed as high as $31 (why we recommend keeping a small portion as a "lottery ticket"). With a fresh Sell today, we are recommending the Jun $230 puts @ 6.50 (give to take 0.50) 


Buy Signal: CSCO

Although CSCO has dropped out of its YTD upward sloping trend regression channel, it has turned back up enough to generate a Buy. CSCO is not a fast mover, which accounts for the fact that the June $55 calls are only trading at $2.60. A small move back to the old high at $57.50 from just two weeks ago should see these calls rise 35-50% over the next few weeks.