Reviewing Recent UNH & RDDT Trades

Healthcare is one of the few sectors that has proven its resilience time and again, and UnitedHealth Group (UNH) is a clear leader in this space. On May 16, 2025, I seized the opportunity and bought 100 shares of UNH at $293.25. But I didn't stop there—I decided to enhance my returns by writing a covered call with a $295 strike price, expiring on May 23, 2025.

The Setup: Why UNH?

UNH's strong financials and consistent growth make it a prime candidate for both long-term holding and options strategies. Given its stability and the broader market sentiment around healthcare, the $293.25 entry felt like a bargain—especially with earnings growth projections still strong.

The Covered Call Play

To maximize my returns, I wrote a call option with a $295 strike price. This move not only provided immediate income through the premium but also set me up for a potential exit at a slight profit if the stock gets called away. Here’s the breakdown:

• Purchase Price: $293.25

• Strike Price: $295

• Premium Collected: (To be updated after expiration)

If UNH closes above $295 at expiration, the shares get called away, and I lock in the difference plus the premium—a straightforward win. If it doesn’t, I keep the shares and the premium, ready to rinse and repeat.

Adding to the Momentum

In addition to the UNH covered call, I also executed two other trades in May 2025:

1. UNH $255 Put (Exp. 5/16/2025) – This trade locked in a solid $681 profit, capitalizing on short-term volatility.

2. RDDT $230 Call (Exp. 11/21/2025) – I closed this trade with a $160 profit, taking advantage of momentum in the tech sector.

Both trades contributed to a strong May performance, setting the stage for the covered call on my 100 UNH shares. These option moves are part of my broader strategy of layering option income with stock holdings to amplify returns.

Looking Ahead

This trade is part of my broader strategy to generate income through options while building equity in strong companies. If called away, I can always look for another entry point or deploy capital elsewhere. If not, I’m more than happy to hold UNH and continue writing calls.