Thursday, October 17, 2013

UNH Debit Spread

10/17/13 -Closed

This is a post-earnings trade on UNH. After dropping this morning from yesterday's close of 75.19 we decided to buy into the slight pullback.
  • Vertical Debit Spread, UNH @ 71.31
  • BTO +1 Nov 67.5 C
  • STO -1 Nov 70 C
  • Debit = 1.95
  • Risk = 195
  • BE = 69.45
  • ROR = 55 / 195 = 28%

Update: 11/14/13

  • STC Nov 67.5/70C @2.45
  • Net = $50
  • ROR = 25% in 28 days


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