UNH Options Signal Bullish Bet at $400 as Put/Call Ratio Hits 0.49 – Here’s How to Play It

• UnitedHealth Group (UNH) trades at $360.08, down 1.45% from its previous close, but options data shows heavy call open interest at $400 strikes.
• The put/call open interest ratio is 0.49, favoring bullish bets, with top OTM calls at $400, $380, and $390 for Friday expiration.
• Technical indicators suggest a short-term bullish trend, but long-term range-bound pressure from the 200D MA at $393.096.

Here’s the core insight: options market sentiment is aggressively bullish, with massive call open interest at strikes far above the current price. This hints at a potential breakout scenario—if UNH can rally above key resistance, the stock could see explosive upside. But the technicals tell a mixed story: while the RSI (64.26) isn’t overbought yet, the MACD histogram is negative, and the 200D MA looms as a major headwind. Let’s break it down.

Bullish Calls at $400 and Puts at $310: A Tale of Two Bets

The options chain for Friday expiration tells a clear story. Calls at $400 (OI: 6,650) and $380 (OI: 5,571) dominate, while puts at $310 (OI: 3,279) and $305 (OI: 2,967) show extreme downside protection. This isn’t just noise—it’s a structural imbalance.

Think of it like a seesaw: heavy call buying at $400 suggests investors expect a sharp rebound, possibly driven by sector rotation or earnings optimism. Meanwhile, the puts at $310 indicate some hedging activity, but the low put/call ratio (0.49) means bears aren’t organizing much of a defense.

The risk? If UNH fails to break above $364.0 (intraday high) or test the 30D MA at $352.47, the bullish momentum could stall. The Bollinger Bands also show the stock is near the middle band—no clear direction yet.

No News, But Options Tell a Story Anyway

The lack of headlines isn’t a red flag—it just means the market is pricing in expectations, not surprises. In healthcare, earnings reports and regulatory shifts often drive moves, but without news, options activity becomes the canary in the coal mine.

The heavy call buying at $400 implies traders are pricing in a material upside catalyst, even if it’s not in the headlines yet. Could it be a sector-wide rally, a new partnership, or a shift in Medicaid/Medicare policy? We don’t know—but the options market is betting on it.

Actionable Trade Ideas: Calls, Puts, and Stock Entries

For options traders:

• Friday Play: Buy the $380 call (OI: 5,571). It’s cheaper than the $400 call but still has a realistic path to profitability if UNH rebounds to $380.
• Next Friday Play: The $390 call (OI: 1,548) offers a longer runway. If the stock breaks above $364.0, this strike could catch momentum.

For stock traders:

• Entry near $341.14 (30D support level). If UNH holds here, target the 30D MA at $352.47 as a first exit.
• Aggressive Buy: If the stock closes above $364.0 today, consider adding at $365–370, aiming for the upper Bollinger Band at $372.37.
• Stop-Loss: Below $340.79 (lower Bollinger Band) would invalidate the bullish case.

Volatility on the Horizon: Balancing Bullish Bets and Long-Term Realities

The short-term setup is bullish, but the 200D MA at $393.096 is a psychological wall. If UNH cracks $390, it could trigger a wave of profit-taking. However, the heavy call open interest at $400 suggests some players are already pricing in a break above that level.

Here’s the takeaway: this is a high-conviction trade. The options data screams for a rebound, but the technicals warn of a long-term tug-of-war with the 200D MA. If you’re bullish, the $380 call for Friday is your best bet. If you’re bearish, the $310 put offers downside insurance—but the market isn’t pricing in a crash.

Bottom line: UNH is at a crossroads. The options market is leaning hard into a breakout, but the stock’s long-term trend remains in check. For traders, the key is to play the short-term bullish setup while keeping an eye on the 200D MA. If the stock can clear that hurdle, the bullish case gets a lot stronger. If not… well, the puts at $310 are always there to catch the fall.