- UnitedHealth reports Q3 results before the market opens Tuesday, Oct 13, with investors focused on whether the insurer can restore top-line growth.
- Seeking Alpha expects Q3 revenue to decline while management pursues margin gains by exiting unprofitable lines.
- Implied volatility runs at twice realized volatility, with options implying 40% volatility against roughly 20% realized.
- The stock fell almost 20% after its January earnings report and has traded lower in five of the last 8 earnings.
- Management's 13% to 16% EPS growth target looks achievable, and the stock trades at 17 times forward earnings.
- The CNBC author proposes selling the November 340/420 strangle to finance a January 2027 400 call, for a net debit of about $7.60 per share.
Quotes
“Current options prices imply a 6.5% earnings move, according to Cboe LiveVol data.”
“Revenue is expected to decline”