May-2025 Free Stock Pick

$UNH ( ▲ 2.77% )  

This Months free stock pick is UNH (United Health). This giant has been beaten down badly over the last few weeks due to CEO stepping down and allegations of fraud within the company. The company came out and denounced the allegations of fraud, but the WSJ hit piece written had a big impact to the stocks decline. The major catalyst and telling sign that the company is trading at a discount is the large insider buys totaling around $30mm, which is a big position to buy at once. I purchased call options:

3/20/26 expiration

$260 strike - for $45.11 each contract

This was good timing as the stock has jumped from $250 to $305 quickly.

To date my position is up 72%.

My overall opinion and strategy is to keep holding the call options, and I will look to buy shares if it dips below $300 again. I believe in 6-12 months this will be well over $400. It is trading at a low PE compared to peers and was at $600 not long ago.

Recommendation - Buy UNH shares at or under $300 - you could buy long dated calls, but the price has recently jumped up pretty high on those.