UNH Options Signal Oversold Downtrend: How Traders Can Position for a $300–$350 Range Battle

• UnitedHealth Group (UNH) has dropped 2.16% to $306.80, trading near its 52-week low of $303.53.
• Options market shows 9,382 open interest at the $350 call (this Friday’s expiry) and 8,760 open interest at the $300 put, signaling a tug-of-war between bears and cautious bulls.
• RSI at 24.57 (oversold territory) and bearish Kline/MACD trends suggest a potential rebound—but don’t ignore the 200D MA at $373.96 looming as resistance.

Here’s the core insight: UNH is trapped in a bearish squeeze, with options data and technicals pointing to a high-probability bounce near $303.53—but only if bulls can defend the $300–$321.47 support cluster. Let’s break down why this matters for your portfolio.

The Options Imbalance: A Bearish Crowd with a Hail Mary

UNH’s options chain tells a story of fear and faint hope. The $300 put (8,760 open interest) and $220 put (6,753 OI) show investors are hedging against a sharp drop, while the $350 call (9,382 OI) and $340 call (7,480 OI) hint at a small but vocal group betting on a rebound. The put/call ratio of 0.47 (calls dominate) is bearish on the surface—but don’t forget: RSI at 24.57 screams oversold.

This isn’t just about numbers. It’s about psychology. Traders are pricing in a worst-case scenario (the $220 put) but leaving a backdoor open for a rally to $350. The danger? If the stock breaks below $303.53 (lower Bollinger Band), the $300 put could become a self-fulfilling prophecy.

No Block Trades, But the Market is Whispering

There’s no blockbuster block trading to dissect here, but the OTM options activity is telling. The $350 call (this Friday’s expiry) has more open interest than the next four strikes combined. That’s not accidental—it’s a vote of no confidence in the near term. Yet the $300 put (same expiry) suggests a floor at $300. If you’re long UNH, this is your warning: the crowd is bracing for a drop.

News Void: What’s Missing from the Narrative?

There’s no recent news to anchor this move. That’s both a blessing and a curse. Without headlines to explain the drop, we’re left with pure technical and options-driven analysis. But here’s the twist: when news is absent, options data becomes the market’s diary. The heavy put interest at $300 implies traders are pricing in a worst-case scenario—maybe earnings fears, sector headwinds, or macroeconomic jitters.

This creates an opportunity. If the stock bounces off $303.53 (lower Bollinger Band) and holds above $300, the $350 call could see a surge. But if it breaks below $300, the $220 put might become a dumping ground for panic.

Actionable Trades: Calls for the Brave, Puts for the Pragmatic

For options traders:

• Buy the $300 put (Friday expiry) if you’re bearish. The 8,760 OI suggests liquidity and a high chance of assignment if the stock drops.
• Buy the $350 call (Friday expiry) if you’re betting on a rebound. The 9,382 OI means this strike is a magnet for buyers.
• For next Friday’s expiry: The $305 put (1,493 OI) is a safer bet if you want to hedge a long position.

For stock traders:

• Entry near $303.53 (lower Bollinger Band) if you believe in a rebound. Target $321.47 (30D support) as a first exit.
• Short near $322.59 (30D resistance) if you think the bearish trend continues. Stop-loss at $325.

Volatility on the Horizon: Preparing for UNH’s Next Move

The key takeaway? UNH is stuck in a bearish trap, but the RSI at 24.57 suggests a bounce is coming. The question is: Will bulls hold the $300–$321.47 range, or will bears drag it lower?

If you’re a trader, position yourself for both outcomes. Buy the $300 put to hedge downside risk and the $350 call to capitalize on a rebound. For long-term investors, this is a chance to average down near $303.53—but only if you’re confident in the company’s fundamentals.

One thing’s certain: the next 72 hours will be critical. If UNH closes above $313.89 (today’s open), the bearish narrative weakens. Below $300? The puts will be in play. Stay nimble, and let the data guide your decisions.