UNH Options Signal Bullish Bias: Calls at $340 Dominate as Analysts Upgrade Targets

• UnitedHealth Group (UNH) trades at $323.52, up 0.1% with a short-term bullish Kline pattern.
• Options data shows heavy call open interest at $330–$360 strikes, while puts cluster below $320.
• Analysts raised price targets to $400–$430, citing a 33% discount to sector P/E despite regulatory risks.

Here’s the core insight: options market sentiment and technicals align for a cautious bullish bias, but regulatory headwinds keep the trade asymmetric. Let’s break it down.

Bullish Calls at $340 Signal Earnings Optimism, But Puts at $320 Hint at Caution

The options chain for this Friday (Dec 5) shows a clear imbalance: 2,817 open interest at the $340 call (UNH20251205C340) and 1,405 at the $320 put (UNH20251205P320). This suggests two things:

• Big money is hedging downside risk below $320, where the 30D support level sits at 320.84.
• Speculative buyers are betting on a post-earnings pop, with the $340 call acting as a psychological hurdle.

The put/call ratio of 0.48 (favoring calls) reinforces this, but don’t ignore the puts. If UNH dips below $322.80 (intraday low), the 200D support at $302.88 could trigger panic selling. No block trades today, so no whale moves to flag—yet.

Regulatory Risks vs. Analyst Optimism: A Tug-of-War for Price

The news flow is a mixed bag. On one hand, UNH’s Q3 earnings beat ($2.92/share) and dividend hike ($2.21/share) show operational resilience. On the other, exiting 100+ Medicare Advantage plans and DOJ investigations cast a shadow.

But here’s the twist: institutional investors are buying the dip. Arrowstreet Capital’s 28.7% stake increase and 87.86% institutional ownership signal long-term confidence. Analysts like UBS ($430 target) and Wells Fargo ($400) are betting the company can navigate regulatory storms while growing earnings at 13–16% annually.

Actionable Trades: Calls for the Bold, Puts for the Pragmatic

For options traders, the $340 call (UNH20251212C340) expiring Dec 12 is a high-conviction play. If UNH breaks above the Bollinger Band upper bound ($339.34) and holds $324.16 (middle band), this strike could see 10–15% gains. Pair it with a $320 put (UNH20251212P320) for a collar strategy to cap losses.

Stock traders should consider entry near $322.80 (intraday low) with a stop-loss below $320.84. A breakout above $328.70 (intraday high) could target $335, aligning with the 30D moving average.Volatility on the Horizon: Balancing Bullish Momentum and Regulatory Uncertainty

The next two weeks will test UNH’s resolve. A strong earnings report (guidance raised to $16.25/share) could push the stock toward $340, but regulatory headlines might drag it back. The key is timing: if the stock holds above $324.16, the bullish case strengthens. Below $320, defensive plays make sense.

Bottom line: This is a high-reward, high-risk setup. The options data and analyst upgrades lean bullish, but regulatory risks mean volatility isn’t going away. Stay nimble, and let the technicals guide your exits.