UnitedHealth shares are doing something unusual ahead of earnings

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UnitedHealth Group is scheduled to report earnings on Tuesday, October 13. Implied volatility on its options is running at twice realized volatility, making short premium strategies attractive ahead of the release. The stock trades at 17 times forward earnings with free cash flow at 5.7% of enterprise value. Medicare enrollment grew 4.5% year-over-year while commercial enrollment rose 2.9%, suggesting market share gains in a U.S. labor market that expanded only 1.4%. The recommended strategy involves buying a January 2027 400 call while selling a November 340/420 strangle to cut the net cost by roughly 58%.

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Telemac
Telemachttp://cryptoinfo.ch
Passionné de nouvelles technologies, j’explore l’univers de la blockchain et des cryptomonnaies pour partager l’actualité et les innovations du secteur.

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