UNH Options Signal Bullish Bias: Key Strikes at $335 and $350 as Earnings Optimism Fades

• UnitedHealth Group (UNH) trades at $326.82, down 1.2% from its previous close of $330.83
• Options data shows heavy call open interest at $350 and $335, with puts clustered near $300 and $320
• RSI at 25.79 and MACD below zero suggest short-term bearish momentum, but bullish options bets hint at a potential rebound

Here’s the core insight: UNH’s options market is betting on a rebound above $335, even as technical indicators and recent downgrades paint a mixed picture. The key question is whether the stock can hold critical support levels or if bears will force a test of the $300 floor. Let’s break it down.

The Options Imbalance: Calls at $335 and $350 Signal Optimism, Puts at $300 Warn of Risk

UNH’s options chain tells a story of conflicting narratives. For Friday expiration, call open interest spikes at $335 (3,829 contracts) and $350 (6,436 contracts), while puts dominate at $300 (2,018) and $320 (1,864). This suggests two camps: bulls eyeing a rebound to $350 and bears bracing for a drop to $300. The put/call ratio of 0.48 (favoring calls) reinforces the bullish bias, but don’t ignore the puts—they’re a warning sign if the stock breaks below $325.

The absence of block trades is telling. No large institutional bets are skewing the data, so retail and institutional players are roughly aligned. That means the $335 and $350 call strikes are genuine hotspots of conviction. But here’s the risk: if the stock fails to hold $325, the $300 puts could trigger a cascade of selling.

Earnings Beat vs. Analyst Downgrades: Can UNH’s Narrative Hold?

UnitedHealth’s Q3 2025 results were a mixed bag. The $2.92 EPS beat and $113.2B revenue boost raised 2025 guidance to $16.25/share, which should have sent shares higher. Instead, analysts from Deutsche Bank and TD Cowen downgraded the stock to “Hold,” citing margin pressures and concerns about 2026. The stock’s 3.2% post-earnings drop reflects this tension.

The options market isn’t buying the bearish narrative yet. The heavy call open interest at $335 and $350 suggests investors still see value in UNH’s long-term growth story—particularly in its 50.1 million consumer base and Optum’s cost-cutting initiatives. But the puts at $300 and $320 indicate a lack of confidence in the stock’s ability to sustain its recent gains. If the MCR (medical care ratio) trends higher in future reports, those puts could become a self-fulfilling prophecy.

Actionable Trade Ideas: Calls at $335 and Puts at $320 for Friday Expiry

For options traders, the most compelling setup is the $335 call (OI: 3,829) expiring Friday. With UNH currently at $326.82, this strike is just 2.5% out of the money. If the stock rebounds to $335 by Friday, the call could see a 10–15% move. A safer play is the $350 call (OI: 6,436), which requires a stronger move but offers higher reward if the stock breaks through $335.

On the bearish side, the $320 put (OI: 1,864) is a key watchpoint. If UNH closes below $325 by Friday, this put could see a 5–8% pop. For next Friday’s options, the $370 call (OI: 2,282) is a longer-term bet on a sustained rebound.

Stock traders should consider entry near $325 if the 30D support (344.90–345.68) holds. A break above $335 could target $345 and $360. If the stock drops below $325, the 200D support at $302.88 becomes critical. A stop-loss below $320 would protect against a deeper decline.

Volatility on the Horizon: Balancing Bullish Bets and Bearish Risks

UNH’s path forward hinges on two factors: its ability to maintain the $325 support and the resolution of margin pressure concerns. The options data suggests a 60/40 bullish bias, but don’t ignore the puts—they’re a hedge against a potential breakdown. If the stock holds above $325, the $335 and $350 calls could drive a short-term rally. But if it cracks $320, the $300 puts will dominate the narrative.

The key takeaway? Position yourself for a rebound but keep a tight stop below $325. This is a stock where sentiment can shift rapidly—especially with earnings guidance and analyst ratings in flux. Stay nimble, and let the options data guide your entry points.