UNH Options Signal Bullish Bet at $350 as Short-Term Volatility Nears Key Inflection Point

• UNH trades at $333.18, down 1.9% from $339.71 after a volatile intraday swing between $341.26 and $332.25.
• Options data shows 5028 open calls at the $350 strike (this Friday’s expiry) vs. 1571 puts at $330—hinting at a bullish bias.
• Analyst upgrades, Reddit sentiment shifts, and a $2.21 dividend (ex-dividend Dec 8) fuel near-term optimism.

Here’s the core insight: options market sentiment and technicals align for a short-term rebound toward $350, but the stock’s 1.9% drop today warns of near-term volatility. Let’s break it down.

Bullish Calls at $350 vs. Defensive Puts at $330: A Battle for Control

The options chain tells a story of conflicting bets. For this Friday’s expiry (Dec 5), the UNH20251205C350 call has 5028 open contracts—the highest among OTM strikes. That’s a whale-sized bet that UNH will punch through $350 before expiration. Meanwhile, the UNH20251205P330 put has 1571 open contracts, suggesting some hedging against a drop below $330.

But here’s the twist: the put/call ratio for open interest is just 0.486, meaning calls dominate. That’s classic bullish positioning. Yet the stock’s 1.9% drop today—despite strong fundamentals—hints at profit-taking or a test of support. If the $320.84 (30D support) holds, this could be a buying opportunity. If not, the 200D support at $302.88 looms.

Reddit Sentiment and Analyst Upgrades: Fuel for the Fire

The recent Reddit-driven sentiment shift from bearish to bullish is no small thing. A viral post questioning if health insurers are “permanently impaired” sparked a reevaluation. Now, 67% of analysts rate UNH as a “Buy” or “Strong Buy,” with a $385 price target. UBS even raised its target to $430.

But here’s the catch: the stock’s technicals are mixed. The RSI at 50.43 is neutral, but the MACD (-3.36) and falling short-term trend suggest caution. The recent 5.8% two-day surge has created a “buy the dip” narrative, but the intraday low at $332.25 shows fragility.

Actionable Trades: Calls for the Rebound, Puts for the Safety Net

For options traders, the UNH20251205C340 (3410 OI) and UNH20251205C350 (5028 OI) are prime candidates. If you’re bullish on a rebound to $350, buying the $340 call this Friday gives you leverage with a lower strike. For next Friday’s expiry, the UNH20251212C340 (1944 OI) offers more time if the rebound takes longer.

On the downside, the UNH20251205P330 (1571 OI) could act as insurance if the stock dips below $330. For stock traders, consider entry near $320.84 (30D support) with a target at $347.92 (resistance). A breakdown below $327.49 would trigger a sell signal.

Volatility on the Horizon: A Tug-of-War Between Bulls and Bears

The next 72 hours will be critical. If UNH holds above $320.84 and rallies toward $340, the $350 calls could explode in value. But a close below $327.49 would test the resolve of bullish options holders. The ex-dividend date on Dec 8 adds another layer—historically, shares drop by ~0.65% on that day.

Bottom line: This is a high-conviction trade for those comfortable with short-term volatility. The options market is pricing in a $350+ move, but the stock’s recent pullback warns of risks. Stay nimble, set tight stops, and watch the $330–$340 range like a hawk.