UNH Options Signal Bullish Setup: Target $340 Breakout as Puts Hedge Near $325 Support

• UnitedHealth Group (UNH) trades at $325.89, down 0.47% from its 52-week high but near key support/resistance clusters.
• Options data shows heavy call open interest at $340 and $350 strikes, while puts at $325 and $317.50 act as a short-term floor.
• Recent earnings beat, telehealth expansion, and a $5B buyback signal strong fundamentals, but a $50M regulatory fine adds near-term noise.

Here’s the takeaway: UNH is in a high-probability setup where bulls are betting on a $340+ breakout, but hedging with puts near $325. The stock’s technicals and options flow suggest upside potential if it clears the 30-day moving average at $327.16.

Bullish Calls vs. Defensive Puts: A Battle for $325–$350

The options market is split between aggressive bulls and cautious bears. This Friday’s call open interest peaks at $350 (OI: 2,763) and $340 (OI: 2,520), while puts at $325 (OI: 1,818) and $320 (OI: 1,582) suggest a floor near current levels. The put/call ratio of 0.498 (calls dominate) reinforces bullish sentiment, but don’t ignore the puts—they signal a potential rebound scenario if the stock dips below $323.5 support.

No major block trades distort the picture, so the OI distribution reflects genuine retail and institutional positioning. Think of it like a tug-of-war: bulls are stacking calls to push UNH higher, while bears are quietly buying puts to protect against a pullback.

News Flow: Earnings Momentum vs. Regulatory Headwinds

UnitedHealth’s Q4 earnings ($98.7B revenue) and new telehealth platform are tailwinds, but the $50M fine for billing practices introduces short-term volatility. The market has already priced in most of the good news—UNH’s 8% post-earnings surge in after-hours trading suggests the $325.89 level is a consolidation point, not a breakout.

However, the recent $2.1B acquisition of Health Analytics Inc. and AI partnership with TechCorp could drive long-term growth. Retail investors are betting on these strategic moves, hence the heavy call buying at $340–$350. The challenge? Near-term profit-taking or regulatory scrutiny could delay the rally.

Actionable Trades: Calls for Breakouts, Puts for Protection

For options traders:

• Bullish Play: Buy UNH20260102C340 (next Friday’s $340 call) if the stock closes above $329.66 (middle Bollinger Band). Target a 10–15% move to $350, where heavy call OI could create a self-fulfilling prophecy.
• Hedge Play: Buy UNH20260102P325 (next Friday’s $325 put) if the price dips below $321.65 (intraday low). This strike offers downside protection while staying within the 30-day support range.

For stock traders:

• Entry Near $323.5: If UNH holds above this level, consider buying at $323–$324 with a stop-loss below $316.38 (lower Bollinger Band). Target $340 as a first profit zone.
• Breakout Above $329.66: A close above the middle Bollinger Band could trigger a rally toward $345, where the 30-day MA and 200-day MA diverge. Use the $325.90 100-day MA as a dynamic support level.

Volatility on the Horizon: Balancing Optimism and Caution

UNH’s path hinges on three factors:

1. Earnings Momentum: Can the stock sustain its post-earnings surge without a major catalyst?
2. Regulatory Risks: Will the $50M fine linger in investor minds, or will growth initiatives overshadow it?
3. Options Expiry Dynamics: This Friday’s expiries could see profit-taking at $340–$350, but next Friday’s longer-dated contracts (like the $340 call) suggest a more measured bullish bet.

Bottom line: The options market is pricing in a $340+ move, but the stock needs to prove it can hold above $325. If it does, the bulls have a clear path to capitalize on UnitedHealth’s strategic momentum. If not, the puts at $325 and $317.50 could spark a rebound. Either way, the next 72 hours will clarify whether this is a short-term rally or the start of a new uptrend.