High-Priced Stocks, Clear Resistance, Better Put Opportunities

Caterpillar and UnitedHealth face technical resistance as new January put options target potential downside.

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Source: DepositPhotos

I choose my options positions carefully. I tend to buy puts against stocks that are nominally high-priced, have decent bid/ask spreads on the options, and have clear resistance levels. Therefore, on top of my existing five positions (COST, CVNA, FXI, LEN, SMH), I have bought January in-the-money puts on CAT and UNH:

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