UNH Options Signal Bullish Setup at $335–$340 Amid Regulatory Risks: Here’s How to Play the Volatility

• UnitedHealth Group (UNH) trades at $324.74, up 0.98% today, but remains below its 30D ($352.15) and 200D ($380.49) moving averages.
• Options data shows call open interest (OI) dominates at strikes like $335, $340, and $350, while puts cluster at $315 and $310. The put/call OI ratio is 0.48, favoring bullish bets.
• Recent news of DOJ antitrust scrutiny clashes with a strong dividend announcement, creating a tug-of-war between risk-off and risk-on sentiment.

The big takeaway? UNH’s options market is pricing in a potential rebound from key support levels, but regulatory headwinds could force a sharp pullback. Let’s break it down.The Options Playbook: Calls at $335–$340, Puts at $315–$310

Options traders are clearly hedging both ways. For Friday’s expirations, calls at $335 (OI: 4,427) and $340 (OI: 3,584) dominate, suggesting a target for short-term bulls. These strikes align with UNH’s 30D support/resistance range (321.56–322.53), meaning a break above $322.50 could trigger a rush to these call strikes.

On the bearish side, puts at $315 (OI: 3,137) and $310 (OI: 2,685) show heavy downside positioning. The $315 strike lines up with the lower Bollinger Band (315.95), a critical support level. If UNH breaks below $315, these puts could accelerate the slide.

The next-week options chain amplifies this tension. Calls at $400 (OI: 7,734) and puts at $250 (OI: 7,472) suggest a high-stakes bet on either a regulatory-driven collapse or a rebound fueled by bargain hunters. But with no block trades reported, it’s retail and institutional options players driving this action.

News vs. Options: A Clash of Narratives

Last week’s DOJ antitrust probe is the elephant in the room. Regulators are scrutinizing Optum’s vertical integration strategy, which could lead to fines or forced divestitures. This explains the heavy put positioning at $315–$310. But here’s the twist: the dividend announcement (payable at $1.35/share) signals management’s confidence in cash flow stability.

Analysts are split. Some see the antitrust risk as a short-term headwind, while others argue UNH’s scale and integrated model will shield it from material harm. The options market seems to agree—call OI at $335–$340 implies traders are pricing in a rebound if the DOJ’s probe doesn’t escalate.

Actionable Trade Ideas: Calls, Puts, and Precision Entries

For options traders, the most compelling setups are:

• Bullish: Buy UNH 11/15 $335 calls (Friday expiry) if the stock holds above $322.50. A break above $325.08 (today’s high) could trigger a rally toward $335, where heavy OI might create a self-fulfilling prophecy.
• Bearish: Buy UNH 11/15 $315 puts if the stock dips below $319.88 (today’s low). The lower Bollinger Band at $315.95 is a key level—break it, and the puts could accelerate the decline.

For stock traders, consider:

• Entry near $315.95 (lower Bollinger Band) if support holds. Target a rebound to $322.52 (30D resistance) or $325.08 (intraday high).
• Stop-loss below $310.11 (200D support) to avoid a deeper slump.

Volatility on the Horizon: Balancing Risk and Reward

UNH’s technicals and options data paint a mixed picture. The RSI at 15.7 is deeply oversold, hinting at a potential rebound. But the MACD (-6.72) and histogram (-5.05) suggest momentum is still bearish.

The key is timing. If the DOJ’s probe remains contained, the $335–$340 call strikes could act as a magnet. But if regulators escalate their demands, the $315–$310 puts will dominate.

Final Takeaway: This is a high-stakes chess match. The options market is pricing in a volatile near-term range, with both bulls and bears eyeing key levels. For traders, the path of least resistance depends on whether the DOJ’s scrutiny softens—or hardens. Either way, UNH’s $315.95 support and $322.52 resistance are your guideposts. Stay nimble, and let the data drive your decisions.