UNH Options Signal Bullish Bias at $350 Strike: Here’s How to Play the Regulatory Rebound

• UnitedHealth Group (UNH) trades at $322.28, down 3.08% amid antitrust scrutiny but shows oversold RSI (31.48) and bullish Kline patterns.
• Options data reveals heavy call open interest at $350 (5,497 contracts) and $400 (9,111 contracts), suggesting a potential rebound to $350+.
• Put/call ratio of 0.48 (calls dominate) and $315–$320 support levels indicate a floor near $315 if the stock breaks below $320.

Here’s the takeaway: UNH’s options market is pricing in a short-term rebound from oversold levels, with institutional bets at $350 and $400 strikes. While regulatory risks linger, technicals and earnings momentum could drive a bounce—if support holds.Bullish Sentiment at $350 and $400 Strikes

The options chain tells a clear story: traders are betting on a rebound. For Friday expiration, the $350 call (OI: 5,497) and $345 call (OI: 4,364) are the most watched, while next Friday’s $400 call (OI: 9,111) dwarfs all others. This suggests a "floor" near $350 and a "ceiling" target at $400 for aggressive bulls. The put/call ratio of 0.48 (calls dominate) reinforces the bullish bias, though the $315–$320 put OI (3,138 and 2,753 contracts) hints at a potential 8–10% downside risk if the stock breaks below $320.

But here’s the catch: The RSI at 31.48 is screaming oversold, and the 30-day moving average ($350.54) is just above the $350 call strike. If the stock holds $320 (lower Bollinger Band at $311.29), the path of least resistance is upward. However, a break below $320 could trigger a test of the 200D support at $302.88.

Regulatory Headlines vs. Earnings Momentum

The DOJ’s antitrust probe into Optum’s vertical integration is the elephant in the room. But don’t let that blind you to the bigger picture: UNH just beat Q3 earnings, raised guidance, and is expanding AI-driven healthcare solutions. Analysts from Zacks and major banks still have "buy" ratings, and Berkshire Hathaway’s stake in UNH hasn’t budged despite the sell-off.

The key question is whether the market will treat this as a short-term correction or a long-term risk. The options data leans toward the former—traders are hedging the regulatory uncertainty with calls at $350 and $400, not fleeing the stock. Meanwhile, Warren Buffett’s continued hold and David Tepper’s recent divestment (-10.87% portfolio impact) suggest a split in institutional sentiment.

Actionable Trade Ideas: Calls at $350, Stock Buy at $320

For options traders:

• Friday Play: Buy the $350 call (OI: 5,497) if UNH holds above $320. Target $350+ by Friday close.
• Next Friday Play: Buy the $370 call (OI: 6,787) if the stock breaks $345. This gives room for a 10–15% move before expiration.

For stock investors:

• Entry: Consider buying UNH near $320 if it holds above the 30D support (321.56–322.53).
• Target: $345–$350 (aligns with 30D MA and call-heavy OI).
• Stop Loss: Below $315 (put-heavy OI) triggers a reevaluation.

A bearish alternative: Buy the $315 put (OI: 3,138) if the stock drops below $320, targeting a 6–8% move to $300. But given the RSI and moving averages, this feels like a "buy the dip" scenario for long-term holders.

Volatility on the Horizon

The next 10 days will be critical. If UNH holds $320 and rallies to $350, the $400 call (next Friday) becomes a high-probability play. But if the DOJ investigation escalates—say, with a demand for divestitures—the $315–$320 put OI could trigger a sharper selloff.

Bottom line: This is a stock caught between regulatory drama and earnings resilience. The options market is pricing in a rebound, but don’t ignore the risk of a breakdown below $315. For now, the path of least resistance is up—but only if support holds.