UNH Options Signal Bullish Bias: Key Strikes at $340 and $320 Offer Defined Risk/Reward Setups

• Current Price Action: UNH trades at $327.58, up 0.86% from the open, with volume surging to 2.54M shares.
• Options Imbalance: Call open interest (983K) dwarfs puts (498K), with heavy concentration at $340 calls and $320 puts.
• Technical Divergence: RSI at 35 (oversold) clashes with bearish Kline and MACD trends, hinting at a potential short-term rebound.

Here’s the thing: UNH’s options market is screaming direction. Call buyers are betting on a $340 breakout, while puts at $320 suggest a floor. But technicals paint a mixed picture—let’s unpack why this setup matters for traders today.

Bullish Pressure vs. Bearish Fundamentals

The options chain tells a story of optimism. For Friday expiration (Dec 26), UNH20251226C340 (3,512 contracts) and UNH20251226C330 (2,687) dominate call open interest. That’s not just noise—it’s a vote of confidence in a near-term rally. Meanwhile, puts at UNH20251226P320 (2,147) and UNH20251226P325 (1,899) hint at a psychological support zone.

But here’s the catch: MACD (-0.97) and RSI (35) suggest exhaustion in the short-term rally. The 200-day MA at $353.33 looms as a massive hurdle. If the stock can’t break above $330, the bullish case falters. No block trades to watch—this is retail and institutional options money talking.

News Flow: Institutional Bets vs. Analyst Skepticism

Berkshire Hathaway’s $1.57B new position is a green flag, but don’t ignore the red flags. Deutsche Bank’s downgrade to “Hold” and a 12.2% revenue growth number (vs. 2024) show cracks in the bullish narrative. The $385.54 average price target is 21% above current levels, but technical indicators (falling Bollinger Bands, bearish Kline) suggest a more cautious approach.

Think of it like this: The fundamentals are a sturdy boat, but the technicals are choppy seas. If you’re betting on the long-term story, options like UNH20260102C340 (2,826 OI next Friday) offer a defined-risk way to play it.

Actionable Setups for Today

1. Options Play: Buy UNH20260102C340 if price breaks above $330. Target: $345 (5.3% gain in 7 days). Stop: Below $325.
2. Stock Play: Enter long near $324 support (30D level) with a tight stop at $320.50. Target: $330.33 (Bollinger Middle Band).
3. Bearish Hedge: Buy UNH20251226P320 if price dips below $325. Protects against a 3% drop before Friday.

Volatility on the Horizon

The next 72 hours will test UNH’s resolve. A close above $330.33 could trigger a short-covering rally, but the 200-day MA at $353 remains a distant target. For now, the options market and technicals align on a $320–$340 trading range. Play it with clear stops and targets—this isn’t a long-term bet, but a tactical dance with momentum.

Bottom line: UNH is at a crossroads. The options data leans bullish, but technicals demand respect for the bearish trend. Use the $340 calls and $320 puts as your compass—trade with discipline, and don’t let optimism blind you to the charts.