UNH Options Signal Bullish Setup: Calls at $340–$350 Highlight Breakout Potential Amid Analyst Upgrades

• UnitedHealth Group (UNH) surges 3.75% to $336.73, trading above its 30D moving average of $334.44.
• Options data shows heavy call open interest at $340 and $350 strikes for Friday’s expiration, with 3252 and 2729 contracts outstanding.
• Analysts raised price targets to $375–$440, citing margin recovery and Optum growth, while legal/political risks linger.

Here’s the core insight: UNH’s options market is betting on a near-term rally above $343, with technicals and analyst upgrades aligning for a bullish breakout. The stock’s 3.75% intraday gain and oversold RSI (48) suggest momentum could carry it toward $340–$350 resistance levels. But let’s dig into why this setup matters.

Calls Dominate at $340–$350, Puts Signal Caution at $320

The options chain tells a clear story: call open interest is concentrated at $340 (3252 contracts) and $350 (2729 contracts) for Friday’s expiration. This suggests institutional players are hedging or positioning for a price push above $338.19 (Bollinger Upper Band). Meanwhile, puts at $320 (1420 contracts) and $315 (1347) hint at defensive bets if the stock falters. The put/call ratio of 0.485 (favoring calls) reinforces bullish sentiment, though the lack of block trades means no massive hidden orders to watch.

News Flow: Analyst Optimism Outweighs Legal Risks

Analysts from Wolfe Research, Bernstein, and RBC raised price targets to $375–$440, citing UnitedHealthcare margin recovery and Optum’s long-term growth. The recent $1B Banmedica divestment and Dr. Scott Gottlieb’s board appointment signal strategic focus. However, legal challenges (criminal trial, Idaho lawsuit) and ACA subsidy uncertainties remain. The stock’s 27% discount to analyst targets creates a buffer—if margin recovery and guidance hold, the $336.73 price could retest $343 (breakout threshold) by Friday.

Actionable Trades: Calls for Friday, Stock Breakouts

For options traders: UNH20251205C340 and UNH20251205C350 are prime candidates. If UNH closes above $343 by Friday, these strikes could see 10–15% gains. For next Friday, UNH20251212C345 offers a longer runway if the rally extends.

Stock traders: Enter near $336.73 with a stop-loss below $320.84 (30D support). First target is $343 (Bollinger Upper Band), with a stretch goal at $350 (call-heavy zone). A bullish call spread (e.g., buy UNH20251205C340, sell UNH20251205C350) could cap risk while leveraging volatility.

Volatility on the Horizon

The coming days will test UNH’s resolve. A close above $343 could trigger a parabolic move toward $350, fueled by call buying and analyst optimism. But a drop below $320 would reignite bearish sentiment, especially if legal headlines flare. For now, the data leans bullish—position for a breakout, but keep a tight stop. This is a stock with momentum, margin recovery, and a price target ceiling that’s hard to ignore.