Question about this strategy and what would you do

Posted by BayouSteve on February 11, 2017 (03:07PM)

I have recently purchased 100 shares United Healthcare Group (UNH) @156.70. I Then sold a covered call and received $85.34 premium with a strike at 167.50. February 17 expiration date. The stock has become range bound to such an extent that some analysts I follow have it as a hold. Keep in mind that the stock recently hit an all time high 12/16/2016.

I want to buy a protective put but am I too early or being overly cautious. Its going ex-dividend 3/8/2017. Next earnings report is 4/2017. 

Posted by made to trade on February 12, 2017 (04:31PM)

No idea.  hard to tell what you want.  did you buy UNH for capital appreciation or dividend?  do you think there will be a broad market correction?  are you in UNH for the long haul?

I mean if you think UNH will decline in price, why not just reduce your position and own 50 shares instead of 100.  Buying put assumes you expect vol to increase

Posted by BayouSteve on February 13, 2017 (10:24AM)

Think I will wait for the dividend and then close it out. 

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