United Health to Fall?
Symbols: UNH
United Health (NYSE: UNH) has been trading sideways for the better part of four months and has currently fell to the lower end of the range; it is also pushing near the lower end of the Bollinger Band. It is also trading lower than the 50-day moving average; if it cannot trade back above it very soon (within a day?) I am sure the technical vultures will come out and knock the stock down very soon.
Options trading in United Health is echoing the same bear tone with the March $32 puts purchased on the offer over 16,000 times this morning. Though those options expire this week, traders are still very nervous that the stock may sink 2.4% further and put the puts in the money.
I would get short this stock through put spreads in April.
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