UNH – Short-term Bearish Entry - One Week HoldI will be placing an order with specs below on Monday.
Trade Entry
Jan. 10 expiry. 285/290 Call credit spread for credit of $3.25 or more. Max gain is credit received $325. Max loss is $175. Exit before expiry. This trade will end before earnings.
One leg of this trade is 78% POP. Other leg is 57%. Total probability of profit is 70%. Good.
If UNH closes on 1/10 below $285, the full credit $325 is kept.
Stops - If price goes above $292 this is invalid.
Exit - 50% profit or greater. Keep to expiry if everything still going down below $285.
Chart Details
Almost a double-top ($2 difference). I consider less than $1 difference true double-top.
Bearish EMA cross and bearish 10WeekMA cross will confirm downtrend.
Pattern may go down to fill gap providing other entries.
I am not sure how UNH will act around earnings, so trade will expire before earnings.
If earnings are negative, we can continue down.
If earnings are positive, we will have a good reference point for bullish entry.
About Me
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I am not a financial advisor. My comments and reviews are based on what I do with my personal accounts.
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Disclosure - I am long BTCUSD, GBTC. Short term GDX Bullish, SPXS Bullish
