UNH Options Signal Bullish Bias: Calls at $350–$400 Dominate as Analysts Target $400+ by Year-End

• UNH trades at $327.43, down 1.27% from $331.63, with volume surging to 3.37M shares.
• Options call open interest (OI) outpaces puts 2:1, with heavy concentration at $350–$400 strikes.
• Analysts raised price targets to $409–$440, while the stock remains below its 200D MA of $356.49.

Here’s the core insight: options market sentiment is aggressively bullish, with call OI dominating at strikes far above current price levels. This suggests traders are pricing in a sharp rebound—despite the stock’s short-term bearish trend. Let’s break down why this matters for your strategy.

Bullish Imbalance in OTM Options: Calls at $350–$400 Signal Big Bets

The options chain tells a clear story. For this Friday’s expiration, UNH20251219C350 and UNH20251219C360 have 11,235 and 8,409 open contracts respectively—strikes that are 7–10% above today’s price. Even the $400 call (OI: 13,587) sees heavy interest, implying some traders expect a 22% pop by year-end.

Meanwhile, put OI is concentrated at $300–$320, with UNH20251219P320 at 4,954 contracts. The put/call ratio of 0.499 (calls: 1.09M, puts: 544K) confirms a stark bullish bias. But here’s the catch: if the stock fails to break above $330.18 (intraday high), those deep OTM calls could expire worthless.

No block trades are reported, so this is retail and institutional money quietly building positions—no sudden whale moves to worry about.

News Flow: Strategic Shifts and Dividend Hikes Fuel Optimism

UnitedHealth’s recent moves are fueling this bullishness. The expansion of its cost-based pharmacy model and the $5.2% dividend hike signal operational stability. Analysts at UBS and Jefferies raised targets to $430–$409, betting on long-term resilience despite short-term turbulence from cyberattacks and regulatory scrutiny.

But don’t ignore the risks. The stock’s 34% drop in 2024 and ongoing leadership challenges mean volatility isn’t going away. If the dividend story falters or pharmacy reimbursement models face pushback, the $302.88–$310.11 support zone (200D MA) could crumble.

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

For options traders: UNH20251226C350 (next Friday’s $350 call) is a high-conviction play. At $327.43, it’s 7% out of the money but has 2,241 contracts in OI—enough liquidity to avoid slippage. If the stock breaks $330.18, this could pay off handsomely.

For stock buyers: Consider entries near $322.19 (30D support) with a stop just below $321.53. A breakout above $338.94 (50D MA) would validate the bullish case.

Bearish hedgers might pair a long UNH20251226P320 (641 OI) with a short UNH20251226P310 (609 OI) for a credit spread. This caps risk at $10 while profiting if the stock holds above $310.

Volatility on the Horizon: Balancing Bullish Bets and Caution

The key takeaway? UNH is in a tight squeeze between bullish options bets and bearish technicals. The stock needs to reclaim its 50D MA ($338.94) to justify those $350+ calls. Until then, treat this as a high-risk, high-reward setup.

If you’re bullish, lock in those $350 calls. If you’re cautious, use the $320–$310 put spread to hedge. Either way, this is a stock where patience and precise entry points will separate winners from losers in the coming weeks.