While the AI and Semiconductors are stealing headlines and double digit percentage daily gains, this staid, boring, healthcare insurance congonmerite is quietly positioning itself for a major move up in the weeks ahead.
UNH - The world's largest health insurer, about to break above key resistance levels.
UNH is at a crossroads of longer-term and short-term trend channels. A breakout now targets Fib extension price area of $490-$550 by mid-summer.
AI, Semiconductors and SpaceX wannabe's stole Friday's thunder, but UNH quietly sneaked into intermediate term best percentage gain lists, up 25% over the past month and up over 40% in the past two months. Those kinds of gains coupled with some downright cheap 30 day plus calls caught my attention this weekend. Calls are relatively cheap, all things considered and a simple repeat of the past 30 and 60 day price performance could see some mega percentage gains on UNH out-of-the-money calls:
UNH Jun 18th $420C = $2.60: A repeat of the past one month takes UNH up to $460 and theJun $420 calls to $40 = +15X.
UNH Jul $450C = $2.40: A repeat of the past two months takes UNH up to $530 and the Jul $450 calls to $80 = +30X
If UNH goes up the the same 25% and 40% that it did over the past two months in the coming two months, it will rise from its current $380 to at least the $475-530 area. That could take those two calls up massively. That may sound like a big if, it is, but it also is a big, no make that huge, payoff. Worth a small speculative bet? Place UNH on your radar come Monday and if you see it running...re-read this post, especially this:
Trigger: Any continued strength in UNH next week is our trigger to buy both the Jun and Jul out-of-the-money calls.