Sell June $360 Put on UnitedHealth for $10 Premium
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- UnitedHealth Group sees its stock still reasonably priced after a rally, and the June $360 put trades at a $10 premium.
- S&P 500 forward‑looking P/E sits near 21×, while the Schiller CAPE ratio nears historic highs, indicating stretched valuations.
- JP Morgan’s long‑term valuation study links high multiples to lower 5‑10‑year returns, prompting investors to seek standstill returns.
- Optum’s cost pressures and execution issues led to a leadership change, with the former CEO’s return expected to restore discipline.
Why it matters: Retail investors who write the June $360 cash‑secured put on UNH collect $10 per share, lowering their effective purchase price to $350, but risk a $350 loss if the stock drops below the strike, reducing upside.
