UNH Options Signal Bullish Bias: Calls at $420 OI Dominate as Puts at $330 Hint at Risk Management Opportunities

• UNH’s price dropped 2.78% to $345.40, trading below its 30D MA of $355.52 but above key support at $344.65.
• Options data shows 11,283 open calls at $420 (highest OI) and 7,487 puts at $330—hinting at a bullish bias with downside hedging.
• RSI at 39.29 and MACD histogram at -1.63 suggest oversold conditions but a bearish near-term trend.

Here’s the core insight: UNH’s options market is betting on a rebound above $350, but the technicals warn of lingering bearish momentum. The stock sits in a tight trading range, with calls at $420 and $400 dominating open interest—yet puts at $330 and $325 show investors aren’t ignoring the risk of a breakdown below $344.10. This isn’t just noise—it’s a playbook for a stock poised to test its range boundaries.

Bullish Bets and Bearish Hedges: Decoding the Options Imbalance

Let’s start with the calls. The $420 strike has 11,283 open contracts (this Friday’s expiry), followed by $400 (9,151 OI) and $390 (4,902 OI). These are all well above the current price, suggesting big money is pricing in a sharp rebound. Think of it like a storm: traders are buying umbrellas (calls) in case the rain (recovery) comes. But the puts at $330 (7,487 OI) and $325 (4,318 OI) tell another story. They’re not just hedging—they’re preparing for a deluge if the $344.10 intraday low breaks.

The put/call ratio of 0.50 (calls dominate) reinforces this. It’s a classic “buy the dip” setup, but the RSI at 39.29 and MACD’s negative histogram hint at caution. The market isn’t fully convinced the dip is over. For now, the 30D support of $344.65–$345.35 is the critical line. If it holds, the calls at $390 and $400 could pay off. If it breaks, the puts at $330 might become a lifeline.

News and Sentiment: Why the Options Playbook Makes Sense

The recent headlines paint a mixed picture. UnitedHealth’s net margin hit 4% in Q3, and Morgan Stanley praised its 2026 strategy. But the downgrade after Q3 earnings and Medicare policy shifts have investors split. Here’s the kicker: the options data aligns with this duality. The heavy call buying reflects confidence in UNH’s long-term growth narrative, while the puts at $330 and $325 price in short-term skepticism.

Take the downgrade as an example. Analysts argued the beat-and-raise was already priced in, yet the stock fell. That’s a textbook case of “buy the rumor, sell the fact.” The options market is now hedging against a repeat. If UNH can surprise to the upside—say, with better-than-expected Optum Rx growth—the $390–$400 calls could ignite. But if Medicare policy changes or competitive pressures weigh, the $330 puts might be the only thing keeping the stock afloat.

Actionable Trade Ideas: Calls, Puts, and Price Levels to Watch

For options traders, the most attractive setup is the $390 call expiring next Friday (OI: 2,745). Why? It’s just below the 30D MA of $355.52 and sits at the lower end of the Bollinger Band ($351.90). If UNH breaks above $345.35 (the 30D support level), this strike could see a pop. For a conservative play, consider a bull call spread: buy the $390 call and sell the $400 call to reduce cost. Both expire next Friday.

On the downside, the $340 put (OI: 919 next Friday) offers a hedge. If the stock dips below $344.10, this strike could cap losses. Pair it with a long stock position near $345.40 for a balanced approach.

For stock traders, here’s the plan: Enter near $344.65 if support holds, with a target at $351.90 (lower Bollinger Band). A break below $344.10 would signal a shift to defensive plays. Use the $345.35–$344.65 range as your entry window. If the stock closes above $354.54 (intraday high), consider trailing stops to lock in gains.

Volatility on the Horizon: Balancing Bullish Calls and Downside Protection

The next 72 hours will be critical. With 11,283 calls at $420 expiring this Friday, we could see a short-term pop if the stock rallies. But the 200D MA at $388.33 is a distant target—UNH needs a catalyst to break out. For now, the focus should be on the $344.65–$351.90 range. If the bulls take control, the $390–$400 calls will shine. If bears win, the $330–$325 puts could become a refuge.

Bottom line: This isn’t a one-way bet. The options market is pricing in both a rebound and a retreat. Your job is to decide which side of the trade you’re on—and act before the Friday expiry deadline.