UnitedHealth Group Inc has issued a bullish signal and presents a buying opportunity based on the stochastic indicator, which compares the current price of UNH to its recent trading range. The close above 24/share yesterday was indeed important. The 6-month chart clearly shows that 24 is not only the current support but also an infliction point.
For those interested in initiating a postion on UNH, consider the following: buy shares at the current market (24.21/share), and simulataneously "sell to open" the July strike 24 calls which are offered at 1.75/contract. So, this hedging strategy gives you an intrinsic time value of 1.50/share (1.75 plus 24.0= 25.75- 24.21= 1.50) till july option expiration. This is not a bad premium earning considering the risk/reward ratio.