How high can the PE go? I love UNH, but I think we are ripe for a pullback. Just not today.
I think we go up today because of WLP. However, P/E is getting too high for all the insurers. UNH is over 14 now, and they are all ripe for pullbacks. How can this type of PE be sustained? Today I will buy 100 puts in UNH when the stock hits $73. Just a gamble, and I will lose or use the profits to purchase stock when it goes back under the historic 12 pe
I agree with you so I sold covered calls on all my shares. (I was thinking "sell in May") Unfortunately I jumped too early so now the 9000 Jan/2015 $80 calls I sold are worth over twice what I got for them. The company is well managed and hitting on all cylinders, who knows how high it can go?
I say that you will get called away on the Jan15's. I do see UNH going over $80 by 2015....it will be a close one for you. If you do get called away, then you still made bank on this one. You can always buy them back if the price drops :) I just think we hit a temp top here. I was looking back over the historic pe's and we are higher than the past.