UNH rolling put down and selling calls
The speaker suggests rolling the short Jan 300 puts down to the March 290s or 290s calls to convert the position into a longer-term trade. This strategy aims to capitalize on potential price movements while managing risk through the credit or even money generated from the call sale. The speaker also mentions the stock's recent price movements and stabilization as a basis for the trade.
View full notes
- short Jan 300 puts
- sell March 290s or 290s calls
- Market volatility could lead to losses if the stock price moves against the position.
- The roll-down may not result in a favorable outcome if the stock price does not stabilize as expected.