UNH Options Signal $350 Call Battle: How to Play the Regulatory Crossroads

• UnitedHealth (UNH) trades at $336.91, up 0.58% but stuck between 30D support ($327.15) and 200D resistance ($310.11).
• Options market shows 0.56 put/call ratio (calls dominate), with heavy call open interest at $350 and $360 strikes.
• Senate Medicare accusations and DOJ inquiries loom, but analysts still see $391–$430 price targets.

Here’s the takeaway: UNH is at a crossroads—regulatory risks clash with a technically poised short-term rally. Traders need to decide: hedge the downside or chase the $350 call frenzy?The Options Imbalance: A $350 Call vs. $320 Put Showdown

Let’s start with the numbers. This Friday’s options chain shows a staggering 24,221 open interest at the $350 call strike (UNH20260123C350), nearly double the next highest call. Meanwhile, the $320 put (UNH20260123P320) has 2,200 open interest, signaling a key psychological floor.

This isn’t random. The call-heavy skew suggests institutional players are pricing in a post-earnings pop—maybe even a rebound from recent 45% declines. But the puts at $320 act as a safety net. If UNH breaks below today’s intraday low ($328.06), those puts could ignite a short-covering rally.

Block trades? None to report today. But the sheer volume of call open interest at $350 feels like a whale setup. Think of it as a poker hand: someone’s betting big on a $350 breakout by Friday.

Regulatory Headlines: Are They Fuel or Foe?

The Senate report accusing UNH of "aggressive Medicare tactics" is a double-edged sword. On one hand, it raises red flags for investors worried about fines or operational restrictions. On the other, the stock’s 40% rebound from 52-week lows shows buyers are still willing to stomach the noise.

Here’s the twist: the news hasn’t killed the bulls. Analysts remain split, with 16 "Strong Buy" ratings and a $397 average target. That means the market is pricing in a "regulatory storm but business-as-usual" scenario. If the DOJ inquiry softens, UNH could surprise to the upside. But if penalties escalate, those $320 puts might be your only life raft.

Trade Ideas: Calls for the Bold, Puts for the Pragmatic

For options traders:

• Bullish Play: Buy UNH20260123C350 calls if the stock closes above $338.08 (today’s high). Target $350.12 (Bollinger upper band) by Friday.
• Bearish Hedge: Buy UNH20260123P320 puts if price drops below $328.06. Stop loss at $320.12 (lower Bollinger band).

For stock traders:

• Entry: Consider buying near $334.56 (middle Bollinger band) if RSI (58.4) holds above 50.
• Targets: $349.01 (upper band) for bulls, $320.12 (lower band) for bears.

Volatility on the Horizon: The $350 Crossroads

This week’s action hinges on two things: whether UNH can hold above $328.06 and if the Senate drama escalates. The $350 call strike isn’t just a number—it’s a psychological battleground. If bulls win, the stock could reclaim its 200D MA ($341.67). If bears take over, watch for a test of the 30D support ($327.15).

Bottom line: UNH is a high-stakes poker game. The options market is betting on a $350 rebound, but the news flow keeps the table unpredictable. Play it safe with a $320 put, or go all-in on the call if you believe the regulatory storm will pass. Either way, this week’s moves won’t be for the faint of heart.