UNH Options Signal Bullish Bias: Calls at $370 Dominate as Puts at $310 Offer Risk Management Hedges

• Current Price Action: UNH trades at $329.87, up 0.05% with volume at 2.09M. Intraday range shows tight consolidation near 30D support/resistance.
• Options Imbalance: Call open interest (1.12M) outpaces puts (535K), with heavy call OI at $370 and $340 strikes. Puts at $310 and $305 act as key downside hedges.
• News Catalysts: Leadership changes, Medicare Advantage restructuring, and dividend stability shape near-term sentiment.

The core insight? UNH’s options market is pricing in a bullish bias with a focus on $340–$370 as key targets, but traders should watch for volatility spikes from the Medicare Advantage exit strategy.Bullish Sentiment in the Options Chain

Let’s start with the numbers: 3677 open calls at the $370 strike (this Friday’s expiry) and 3205 at $340 suggest investors are banking on a sharp move higher. The put/call ratio of 0.478 (put OI vs call OI) reinforces this—calls dominate by a 2:1 margin. But here’s the catch: the $310 put (3238 OI) acts as a floor. If UNH breaks below 30D support ($320.84), that strike could see a surge in demand. The lack of block trades means no major institutional bets to skew the data, but the heavy call OI at $370 hints at a “whale” or group of traders expecting a breakout.

News-Driven Narrative: Strategy vs Short-Term Pain

The recent news isn’t all smooth sailing. UnitedHealth’s decision to drop a million Medicare Advantage members is a blunt-force move to cut costs, but it risks short-term revenue hits. However, the leadership changes (new CEO, CFO) and dividend continuity signal long-term stability. The options market seems to agree—calls at $340 and $370 align with the company’s 2027 growth targets. Dr. Gottlieb’s board addition also adds regulatory credibility, which could ease investor fears around Medicare scrutiny. The key question: Will the market punish the near-term restructuring, or reward the long-term strategy? The options data leans toward the latter.

Actionable Trade IdeasFor Options Traders:

• Bullish Play: Buy UNH20251205C340 (next Friday expiry, 1762 OI). The stock is currently within $330–$340, and a break above $335 could trigger a rally toward $340.
• Hedge Play: Buy UNH20251128P310 (this Friday expiry, 3238 OI). If UNH dips below $325 (lower Bollinger Band), this put offers downside protection.

For Stock Traders:

• Entry: Consider buying near $320.84 (30D support) if the stock holds above $325. Target $335–$340 if the 30D MA (337.78) breaks higher.
• Stop-Loss: Below $315 (200D support range) would invalidate the bullish case.

Volatility on the Horizon

The next 7–10 days will test UNH’s resolve. A break above $340 could trigger a re-rating of the stock, especially with Warren Buffett’s recent investment and the dividend yield (2.10/share). But the Medicare Advantage exit is a near-term wildcard—watch for earnings revisions or regulatory pushback. For now, the options market is pricing in a 7–10% upside, but traders should balance that with the $310–$305 put OI as a safety net. This isn’t a one-way bet—it’s a calculated dance between growth optimism and operational reality.