[Buying Puts/Buy UHBHN/Limit $6.60]
Dear Member,
I am placing an order to buy December 70 puts (UHBHN) on United Health (UNH) as a limit order of $6.60 for the day. UNH is at a triple top resistance and I will place my initial stop contingent on the stock hitting $66.23, just above the resistance area. I always place actual stops contingent on the price of the stock. Some brokerages, such as OptionsXpress allow such orders to sell or buy options contingent on stock price. If I am filled and if the stock moves down, I will be moving my stop down behind it.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
CutLoss, Inc.
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