UNH Options Signal Bullish Bias: Calls at $340–$450 Highlight High-Risk, High-Reward Setup for December 19 Expiry

• UnitedHealth Group (UNH) trades at $323.04, down 0.18% with volume at 2.46M shares.
• Options open interest shows a 2:1 call/put skew, with heavy call OI at $340 and $400 strikes.
• Bernstein and Barclays raised price targets to $379, but a West Virginia lawsuit adds near-term risk.

The big picture: UNH’s options market is pricing in a sharp upside move by December 19, but technicals and news suggest a cautious approach. Here’s how to navigate the tension between bullish bets and regulatory headwinds.What the Options Chain Reveals About Market Sentiment

The options data tells a story of optimism. For this Friday’s expiry (Dec 12), the top call OI is at $340 (3,590 contracts), followed by $335 (2,683) and $345 (2,385). For next Friday (Dec 19), the frenzy escalates: $400 calls (13,491 OI) and $450 calls (9,561 OI) dominate, suggesting big players are hedging or speculating on a breakout above $340. Meanwhile, put OI is concentrated at $310–$320, indicating limited downside protection. The 0.498 put/call ratio (for open interest) confirms a net bullish bias, but don’t ignore the risk—those deep OTM calls are expensive and require a strong catalyst to pay off.

News Flow: Bullish Fundamentals vs. Legal Headwinds

Institutional investors like Berkshire Hathaway are piling into UNH, and Bernstein’s $379 price target reflects confidence in UnitedHealthcare’s growth. But the West Virginia lawsuit targeting Optum’s opioid practices could disrupt short-term momentum. Retail traders might be discounting this risk, given the lack of block trades (no large institutional orders to signal a shift). Still, the lawsuit adds a wildcard—regulatory actions can move stocks faster than earnings. For now, the technical range of $320–$327 (per recent guidance) holds, but a break above $327 could trigger a test of the 30-day resistance at $324.36.

Actionable Trade Ideas: Calls, Puts, and Core Positioning

1. Options Play: Buy UNH20251219C340 (Dec 19 $340 calls) if the stock closes above $327 by Friday. These calls are cheap (implied volatility is low) but require a sharp move. For a longer-term bet, UNH20251219C400 offers leverage if Bernstein’s $379 target materializes.
2. Stock Play: Consider entry near $320 if support holds. Set a tight stop below $322.50 (intraday low). Target $327 first, then $335 if the 30-day range breaks.
3. Risk Management: Sell UNH20251219P320 (Dec 19 $320 puts) to hedge downside, especially if the stock dips toward the Bollinger Band lower bound ($308.32).

Volatility on the Horizon

UNH is caught between bullish fundamentals and regulatory risks. The options market is pricing in a $340+ move by Dec 19, but technical indicators (MACD at -2.38, RSI at 52.12) suggest the stock is in a consolidation phase. If the $327 resistance breaks, the 30-day range could expand—look for a test of the 200-day MA at $361.20 as a long-term target. For now, treat this as a high-conviction trade: the reward is steep, but the path to $379 will require navigating legal and technical hurdles. Stay nimble, and watch the $320 support level like a hawk.

Final Take: UNH’s options activity screams bullish, but don’t let that blind you to the risks. Balance your exposure with tight stops and consider a mix of calls and puts to hedge. If the stock holds above $320, the next 10 days could be a golden opportunity—just don’t bet the farm on a $400 call without a plan.