UNH Options Signal Aggressive Bullish Play: Calls at $400 and $370 Highlight Breakout Potential Amid Strategic Shifts

• UnitedHealth Group (UNH) surges 3.27% to $321.74, breaking above 30D support/resistance cluster (320.84–322.015)
• Options market shows 0.47 put/call open interest imbalance, with heavy call OI at $400 and $370 strikes
• Strategic news: 1M Medicare Advantage members cut, Gottlieb board addition, and Q3 earnings beat create mixed sentiment

Here’s the thing: UNH’s options activity and technicals are screaming about a potential breakout. The stock just clawed out of oversold territory (RSI at 30) while call options at $400 and $370 are hoarding open interest like hawks circling prey. This isn’t just noise—it’s a setup. Let’s break down why this could be your next trade.

The Options Imbalance: Bulls Have the Upper Hand

Take a look at this: 9,321 open interest at the $400 call (expiring Nov 28) and 6,134 at the $370 call. That’s not random. Traders are betting big on a sharp move above $322.015, the 30D resistance cluster. Meanwhile, puts at $300 (7,687 OI) act as a hedge—like a safety net for those expecting a pullback.

But here’s the twist: The 200D moving average (371.64) is way above current price, and MACD (-9.41) still trends bearish. This means the bullish bets are fighting against long-term averages. If UNH can’t hold above $322, those $300 puts might get busy. No block trades to tip the scales either—this is retail and institutional money dancing in sync.

News That Could Make or Break the Play

UnitedHealth’s removal of 1M Medicare Advantage members is a double-edged sword. Short-term revenue hits? Check. Long-term margin improvement? Check. Dr. Scott Gottlieb joining the board adds regulatory heft, which matters in a sector as politicized as healthcare. Pair that with a $2.10 dividend (paid today!) and a Q3 earnings beat, and you’ve got a stock that’s trying to balance austerity with growth.

But don’t ignore the recent 2.1% drop on Nov 18. That jittersome move shows the market isn’t fully convinced. Jim Cramer’s "buy" call helps, but until UNH reclaims its 200D MA, skepticism lingers. Think of it like a boxer with a split record—every punch matters.

Your Playbook: Calls, Puts, and Precision Entries

For options traders: Buy UNH Nov 28 370C at $1.25–$1.50. Why? The $370 strike has 6,134 OI and sits just below the 30D MA (333.66). If UNH breaks $322, this call could ride the momentum to $333+ by expiration. Alternatively, Nov 28 400C is a high-risk/high-reward play for a 25%+ pop (from 321.74 to 400).

Stock traders: Consider entry near $322 if support holds. Target $333 (middle Bollinger Band) as a first profit zone. Stop-loss below $320.84 (support cluster). For downside protection, buy Nov 28 300P at $1.80–$2.20. It’s a cheap insurance policy if the 322 level cracks.

Volatility on the Horizon: Ride the Wave or Hedge the Storm

UNH is at a crossroads. The options market is pricing in a 50/50 bet between a breakout and a breakdown. If the stock holds above $322, the 30D MA at 333.66 becomes a new target. But if it slips below $320, watch the 200D support zone (302.88–310.11) turn into a battleground.

Bottom line: This isn’t a "buy and hold" play. It’s a tactical move. The calls at $370 and $400 are your rocket fuel if the bulls win the day. The puts at $300 are your parachute if they don’t. And the dividend? That’s just a cherry on top for long-term holders. The next 72 hours will tell if this is a flash in the pan or the start of something bigger.