UnitedHealth Stock Eyes Bounce Off Familiar Trendline

Year-over-year, the security maintains an over 26% lead

Digital Content Manager
Jan 10, 2022 at 3:38 PM
facebook twitter linkedin


UnitedHealth Group Inc (NYSE:UNH) is up 1.2% to trade at $464.20 this afternoon, after the equity earned a price-target hike from Bernstein to $564 from $508. A floor at the $455 level is also containing UNH's pullback from a Dec. 30, all-time high of $509.23, helping it maintain a 27.8% year-over-year lead. Plus, the security's latest bear gap has placed it back near a trendline with historically bullish implications -- the same one that has preceded record peaks before.
 
The trendline in question is UnitedHealth stock's 80-day moving average. The shares are now within just one standard deviation of this trendline, after a couple of months spent well above it. According to new data from Schaeffer's Senior Quantitative Analyst Rocky White, six similar signals were observed over the past three years. UNH enjoyed a positive return one month later in 80% of those cases, averaging an 2.7% gain. From its current perch, a comparable move would place the stock back above $475.

 

UNH 80 Day

The brokerage bunch is already bullish towards UnitedHealth stock. Of the 20 analysts in question, 17 carry a "buy" or better rating, while only three call it a tepid "hold.". Plus, the 12-month consensus target price of $511.11 is a 10.4% premium to the security's current perch.

The equity could still benefit from a shift in the options pits, though, per UNH's 50-day put/call volume ratio of 1.62 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio sits higher than 97% of readings from the past year, indicating a strong inclination for long puts recently. 

Echoing this, short-term options players have rarely been more put-biased in the past year. This is per UnitedHealth stock's Schaeffer's put/call open interest ratio (SOIR) of 1.22, which stands higher than 78% of readings from its annual range.

 

Minimize Risk While Maximizing Profits

There is no options strategy like this one, which consistently minimizes risk while maintaining maximum profits. Perfect for traders looking for ways to control risk, reduce losses, and increase the likelihood of success when trading calls and puts. The Schaeffer’s team has over 41 years of options trading success targeting +100% gains on every trade. Rest assured your losses are effectively limited to your initial cost at the time of making your move! Don't waste another second... join us right now before the next trade is released! 

 


 


 
Special Offers from Schaeffer's Trading Partners