UNH Options Signal Bullish Bias: Target $350+ as Call Open Interest Soars 2.2x Puts

• UNH surges 2.8% to $337.63, breaking above its 52-week low amid strategic management shifts.
• Call open interest dominates next Friday’s chain, with 13,624 contracts at $400—2.2x the nearest put OI.
• Options data and news suggest a $350 psychological hurdle could be the next catalyst.

Here’s the core insight: UNH’s options market is screaming bullish, with call open interest nearly doubling puts. The stock’s 2.8% intraday pop isn’t just noise—it’s a setup. Let’s break down why this could be your best shot at capitalizing on a potential breakout.

Bullish Call OI Dominance at $340–$350: A Battle for $350+ Breakout?

The options chain tells a clear story. This Friday’s call open interest peaks at $340 (4,136 contracts) and $350 (2,431), while next Friday’s $400 strike ($UNH20251219C400) dwarfs put activity at 13,624 contracts. That’s not just optimism—it’s a bet that $350+ is the next target.

But don’t ignore the risks. The 200-day moving average ($359.80) looms as resistance, and the RSI at 64.5 hints momentum is cooling. If the $340 strike (current upper Bollinger Band at $341.55) fails to hold, the stock could retest the 30-day support zone ($321–$322). Block trading is quiet today, so this is a retail/institutional crowdplay—no whale moves to muddy the waters.

Management’s Strategic Shifts Fuel Optimism: Can $350 Hold as a New Floor?

The news isn’t just noise. UnitedHealth’s decision to cut Medicare Advantage membership by 1 million members in 2026—while painful short-term—signals a pivot toward profitability. Combine that with 10% premium hikes (vs. sector 25%) and heavy buying by Tepper and Burry, and you’ve got a narrative that’s hard to ignore.

The stock’s surge today aligns with this story. But here’s the catch: the Medical Care Ratio (MCR) at 89.9% is still a drag. If medical costs don’t stabilize, the $350 level could become a speed bump, not a springboard.

Actionable Plays: Buy UNH20251219C340 and UNH20251219C350 for 5–7% Upside

For options traders: The $340 and $350 calls expiring Dec 19 ($UNH20251219C340, $UNH20251219C350) are your best bets. Why? High open interest means liquidity, and the stock’s current price ($337.63) gives these strikes a fighting chance to finish in the money. Target a 5–7% move by expiration.

For stock players: Consider entry near $335 if the 30-day support ($321–$322) holds. First target: $345 (5.5% gain). Second: $355 (5.8% from entry). Stop-loss at $328 (intraday low) to protect against a breakdown.

Volatility on the Horizon: Why $350 Is the Make-or-Break Level for UNH

The next 72 hours will be critical. If UNH holds above $340, the $350–$355 zone becomes a magnet. But if it stumbles below $335, the puts at $310–$320 could ignite a short-term selloff. This isn’t a binary bet—it’s a tightrope walk between management’s disciplined cuts and medical cost inflation.

Bottom line: The options market is pricing in a $350+ future. Your job? Decide if you’re buying the call options to ride the wave or stepping into the stock at a level that balances risk and reward. Either way, the next few days will tell the tale.