How to buy a major Dow component, at a discount

CNBC Top News ·

How to buy a major Dow component, at a discount

UnitedHealth is one of the largest U.S. companies in one of the largest sectors that pays a respectable dividend. Despite this, I wouldn't buy the stock outright. …

UnitedHealth is one of the largest U.S. companies in one of the largest sectors that pays a respectable dividend. Despite this, I wouldn't buy the stock outright. Instead, I favor an options strategy that pays me to get long at a discount. Specifically, I like selling the June $360 puts at $10 (or better) rather than purchasing the stock at the moment for several reasons. The market is stretched: First, equity valuations generally are quite stretched. …

Original source: CNBC Top News

Mentioned

United States