ThrivingProject

Unum $UNM Insurance: Long-Term Value High Probability Option

Long
NYSE:UNM   Unum Group
Unum is an insurance company that is listed on the S&P 500 Index . In October 1992, their TTM income was about $250,000,000, and their most recent quarter TTM income is just shy of $1,000,000,000. However, their value derives from their P/E ratio , for that is about 5, the same value of the S&P 500 index's all-time-low P/E ratio (which occurred around 1929). Their other fundamental characteristics are very safe: Price to Book 0.4849, Debt to Equity Ratio 0.3102, Book Value Per Share as of date of charting $53. Technically, UNM is trading in a logarithmic channel and its current price is under its linear regression , which leaves room for a multi-year long (decade) increase in price. Expect an Elliott Wave (1) $36 (2) $18 (3) $60 (4) $36 (5) $135. The strategy is to invest in Long-Term Equity Anticipation Securities (call options with expiration dates about 100 days away) and roll them over at 45 days until expiration. Deep OTM calls provide more leverage with the March 19, 2021 $30 call currently boasting a multiplier of 8.15 (Delta 0.14, Ask $0. 40 , UNM Market Close $23.27). Since the current Federal Open Market Committee's target rate is 0.00-0.25 and Fed Chair Jerome Powell saying interest rates will stay low, stock prices are likely to rally, and value investors and are likely to purchase this stock soon, as UNM's dividend yield of 4.90%; the beginning of this can be seen in the increasing RSI!
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