What do you think of major health care options on Cigna and United Health?

Discussion in 'Options' started by westphalia1, Apr 30, 2011.

  1. I am new to the group. I was looking at investing in some long hold (call) options on Cigna (CI) and United Health (UNH). During the initial downturn in the economy -between G.W. Bush and Obama-the markets went down and took all the major stocks with it. I was reading something saying that during that time all the major health care insurers "made" healthy profits even with the recession and didnt take much of a loss.CI and UNH are not the same as commodities or tech but are an essential part of our lives. By looking at the (Yahoo Finance) interactive charts and comparing the 2 with the Dow Jones 2 years it shows both companies above the Dow. The 5 year comparison shows the 2008-2009 downturn and CI still came above the Dow for this period. The very sort term trend (on the comparison) shows down for the 2 stocks but the long-and much longer trend shows upward trend above the Dow. I was thinking about an in the money LEAP (call) option-no strategies, condors, collars, puts or anything like that. Just a simple in the money or deep in the money LEAP hold on either CI or UNH. I have a virtual trading account on the CBOE Virtual Trade website and have had CI in my account since the first week of April, 2011. 4 call options. 3 of them are for July 2011 and 1 for i belive) Jan. 2013. The funny thing is the Jan. 2013 40 (Call) gained just as much profit as my one July 2011 43 (Call) option. Can any of you tell me what you think of these 2 stocks and maybe look at the past balances and incomes and the trends and tell me what you think of them as a long term Leap (call option) hold? Do you think an in the money Leap could produce a steady monthly income? Thanks, Dan (new member at: westphalia1@yahoo.com