UNH Options Signal Bullish Bias at $300 as Regulatory Risks Loom—Here’s How to Play the Volatility

• UnitedHealth Group (UNH) surges 2.9% to $276.34, trading above its 200D MA but stuck in a long-term range.
• Options market shows heavy call open interest at $300 (4,940 contracts) and bearish put activity at $240–$275.
• A $1.5M block trade in July 2026 puts at $270 hints at hedging against potential downside risks.

Here’s the takeaway: UNH is caught in a tug-of-war between bullish options positioning and regulatory headwinds. The stock’s 2.9% intraday rally has sparked a surge in call buying at the $300 level, while puts at $240–$275 suggest lingering bearish caution. But with Medicare probes and PBM rule changes looming, traders need to balance optimism with risk management.

"Call Overload at $300, Puts as a Safety Net"

The options chain tells a story of divided priorities. For this Friday’s expiration, UNH20260213C300 (OI: 1,591) and UNH20260213C320 (OI: 1,296) are the most watched calls, with heavy open interest clustering above $300. This suggests institutional players are betting on a breakout from the 200D MA ($302.43–$306.24) if the stock can clear its 30D support/resistance zone ($340.47–$342.23).

On the put side, UNH20260213P267.5 (OI: 1,845) and UNH20260213P275 (OI: 1,327) dominate, reflecting a floor-seeking crowd. The block trade in UNH20260717P270—a $1.5M sale of July 2026 puts—adds intrigue. It could signal hedging by large holders against a potential earnings miss or regulatory fallout, but it also hints at a possible short-term floor near $270.

Regulatory Storm Clouds vs. Operational Gains

The news flow is a mixed bag. On one hand, DOJ Medicare billing probes and PBM transparency rules threaten margins. On the other, UnitedHealth’s Medicare Advantage pilot and Optum’s digital health push offer long-term optimism. The key tension? Regulatory risks are front-loaded, but operational fixes (like cost-cutting and rural hospital payments) could stabilize the stock by H2 2026.

Investor sentiment is split: some see a 30% upside by 2027, while others warn of a 19.5% drop if medical costs spiral. The stock’s RSI at 25.47 suggests oversold conditions, but the MACD (-15.72) and bearish Kline pattern caution against a quick rebound.

Trade Ideas: Calls for Breakouts, Puts for Protection

For options traders, the UNH20260213C300 call is a high-conviction play if the stock breaks above $277.43 (intraday high). A $276.34 entry with a stop below $266.40 (intraday low) could target $300–$320. For next Friday, UNH20260220C320 offers leverage if the 200D MA ($324.51) acts as a catalyst.

Bearish players might eye UNH20260213P275 (OI: 1,327) as a hedge, especially if the stock dips below $266.40. A $270–$275 put spread could cap losses while staying nimble. Stock buyers should consider entries near $266.40 (support level) with a target at $285–$300 if the 30D MA holds.

Volatility on the Horizon

The next two weeks will test UNH’s resolve. A breakout above $277.43 could reignite bullish momentum, while a drop below $266.40 might force a retest of the 200D MA. With the put/call ratio skewed to calls (0.647) and block trades hinting at July hedging, the market is pricing in a volatile summer.

Bottom line: This is a stock with a divided identity—a healthcare giant with a strong balance sheet but a regulatory target on its back. Traders who balance call aggression with put protection may find the sweet spot in this tug-of-war.