I have sold a bunch of puts on UNH, some are obviously sold too deep like $130, $150 strike, which are just to harvest premium on a panic and when I was not sure how deep the problems are.
However, I have also sold Sep $250 Puts, primarily as a way to take the shares, if assigned.
Alas, suddenly with Berkshire and other hedge funds purchase (known via 13-f), suddenly everyone see $UNH as a value stock and the stock moved to $300.
So, now I have sold Mar $300 put, hoping either I get the shares or I get a 10% premium.
The price has moved up to $320, as it grinds up, the price is at a level there is big vacuum in volume, meaning there is no resistance and could melt-up… I am not suggesting it will, but if you are someone wants to have an exposure, you need to consider buying now
When you are chicken to buy at the bottom, and as the price starts going up, greedily hoping that the shares will come back to previous low, and you will watch the price melt-up like a loser… is not value investing. It is a gutless investor, who don’t know how to value the stock.
