🎯 $UnitedHealth Group (UNH) Options Strategy : Bull Put Spread
- Underlying: UNH
- View: Cautiously Bullish (Short-term overbought, expecting consolidation with a bullish bias towards $388 target, but aware of RSI >95 risk)
- Strategy Type: Credit Spread / Defined Risk, Positive Theta
- Option Contract Portfolio:
- Sell 1 UNH Put @ $365 Strike (Exp: 2026-05-08)
- Buy 1 UNH Put @ $360 Strike (Exp: 2026-05-08)
- Max Gain & Loss: Max Gain = Net Credit Received; Max Loss = ($365 - $360) - Net Credit
- Initial Cost/Credit: Net Credit (Estimated ~$1.50 - $2.00 per spread, based on chain data)
- Greek Exposure (Simulated):
- Delta: ~+0.15 to +0.20 (Slightly positive, bullish)
- Theta: Positive (~+0.02 to +0.04 daily, per spread) - Earns from time decay.
- Vega: Slightly Negative (~-0.05 to -0.10) - Benefits from stable or falling IV.
- Gamma: Low Negative - Limited impact from large price moves due to defined risk.
- Rho: Low Positive (Negligible for short-term).
- Rationale: This strategy aligns with a "cautiously bullish" view that expects the stock to hold above key support ($365 pivot) during consolidation. It generates immediate income (positive Theta) and profits if UNH stays above $365 by expiration. The long put at $360 defines and limits the maximum loss, making it risk-controlled. The slightly negative Vega is acceptable as IV is at a moderate level (31.6%) and may compress if the overbought condition resolves without a sharp drop. It balances a bullish delta bias with positive theta decay.
- Time Frame: Short-Term (1 week to expiration)
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