UNH Options Signal Bullish Bias: Calls at $350–$400 Dominate as RSI Nears Overbought Territory

• UNH surges 1.68% to $342.38, breaking above its 30D MA but trading below its 200D MA of $359.17.
• Call open interest (OI) dwarfs puts 2:1, with heavy concentration at $350 (3,134 OI this week) and $400 (13,566 OI next week).
• RSI at 67.4 suggests near-overbought conditions, while Bollinger Bands show price is 17 points above the middle band.

Here’s the takeaway: Options traders are aggressively pricing in a $350+ breakout by December 19th, but technicals hint caution if the rally falters near $345.

Bullish Pressure at $350–$400, But Risks Below $325

The options market isn’t whispering—it’s shouting. This Friday’s $350 call (UNH20251219C350) has 3,134 OI, and next week’s $400 call (UNH20251219C400) balloons to 13,566 OI. That’s not just optimism; it’s a bet that UNH will punch through its 200D MA resistance.

But here’s the catch: Puts at $310 (1,974 OI) and $320 (1,883 OI) suggest some hedging activity. If the stock dips below $325—its 200D support zone—those puts could trigger a short-covering rally. No major block trades to note, so this looks like retail and institutional alignment for now.

No News, But Technicals Tell a Story

With no recent headlines to anchor sentiment, traders are leaning on UNH’s price action. The stock’s 1.68% surge today follows a long-term trading range, but the RSI creeping into overbought territory (67.4) warns of a potential pullback. Think of it like a sprinter nearing the finish line—momentum is high, but fatigue could set in soon.

Investor perception? They’re betting on UNH’s structural growth in healthcare, but the lack of news means the trade is purely technical. A break above $345 could validate the bullish case; a close below $337.37 (today’s low) would invite sellers.

Trade Ideas: Calls for the Breakout, Puts for the Safety Net

• Options Play: Buy UNH20251219C350 (next Friday’s $350 call) if price holds above $342.38. Why? High OI and a 1.68% move already in place. For downside protection, consider UNH20251219P310 (next Friday’s $310 put) if volatility spikes.
• Stock Play: Enter long near $340–$342 if UNH holds above its 30D MA ($327.02). Target $355–$360 if the 200D MA breaks. Stop-loss below $325 (200D support) to avoid a deeper correction.

Volatility on the Horizon: Positioning for UNH’s Next Move

This is a high-conviction setup. The options market is pricing in a $350+ move by December 19th, but technicals warn of a possible $325–$330 support test. Your edge? Scalp the rally with short-term calls or play a straddle if the stock whipsaws. Either way, keep an eye on the RSI—once it dips below 50, the bullish momentum could stall.

Bottom line: UNH is at a crossroads. The bulls have momentum, but the bears have a safety net. Your call—pun intended—depends on how comfortable you are with a 10–15% swing in either direction.