MarketWatch: GE HealthCare and Medtronic shares have become crowded bets on growth
MarketWatch columnist Lawrence McMillan believes investors should consider bearish options positions in GE HealthCare Technologies and Medtronic shares. According to the accompanying description of his article, the reason is the numerous bets by market participants on further gains in these securities.
A contrarian approach
McMillan refers to a contrarian strategy under which an investor acts against prevailing market sentiment. The author links this approach to a stock-market principle: caution is necessary when other market participants are overly optimistic.
In the columnist's view, the options market has identified two opportunities to bet against investors' prevailing position in the healthcare sector. These are options strategies designed for a decline in the share prices of GE HealthCare and Medtronic.
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A signal for GE HealthCare
Regarding GE HealthCare Technologies, McMillan noted the emergence of a new sell signal based on the put-to-call ratio. This indicator compares activity in put options, which give the right to sell an asset at a set price, and call options, which give the right to buy an asset at a specified price.
The article is an opinion column and reflects Lawrence McMillan's assessment of positioning in the options market, rather than a report on decisions by GE HealthCare or Medtronic.
