Sell Signal: UNH
Option: May $240 Put (around $4.50)
I'm including the daily chart on UNH to highlight how fast the stock can drop in a downswing. UNH fell from $288 to $232 in less than a month last December and from $272 to $235 in 2 weeks at the end of last month, before a small counter-trend up in the past week. It is down over $5 today, generating the Sell. The target is under $200 by May expiration, making a 35% gain easily reachable and a 400% gain possible on any puts held after profit-talking.