I have been holding back for the last 4-5 months.. I sold 1/15 $80 covered calls on all my shares and have been wishing I had waited a bit.. I am also short puts.. 1/14s and 1/15s they range from $50 down to $30 with an average strike closer to $35 than $40.. Today I shorted 10 dec $60 put contracts... If they fill I will immediately sell march covered calls... UNH has been good to me..
I think that they are being cautious on the exchanges... I think that those exchanges are going to be quick sand for the HMO's which go there for growth. I wonder what the bottom line is on Amil? Is it panning out?
The buyback is awesome, they have bought back 1/3 of the company in the 7 years I have been trading this stock,,,
I wonder if Hemsley is starting to think retirement? He seems to be summing up his tenure in the last earnings statement... Mentioning the new business lines..... The stamp which he put on the company... I think they have a deep bench but it is clear from watching the leadership transitions at other HMO's that a Hemsley retirement may be an inflection point..
I shorted my first set of 10 $15 puts (for $1.80 when the shares were bumping $16) around five years ago, I have shorted thousands of put contracts over the past five years...with a few small exceptions they all have expired worthless...
I wonder what the future holds for UNH? Will it bounce between $60 and $80 for a year? Will it collapse under the weight of government budget troubles? Will it show signs of life and pop up to $100?
If they continue buying back 50 million shares a year while growing revenue and profits things will be rosy..