UnitedHealth Group (UNH) Options Signal Bullish Bias: Focus on $350–$370 Calls as Analysts Target $378 Recovery

• UnitedHealth Group (UNH) trades at $343.43, down 0.62% from its intraday high of $349.97 amid a short-term bullish trend.
• Options open interest shows a 0.49 put/call ratio (calls: 1.18M, puts: 576K), with heavy call OI at $350–$370 strikes expiring this Friday.
• Analysts from Truist and UBS raised price targets to $378, aligning with elevated call open interest at $370 (OI: 5,329) and $350 (OI: 5,091).

Bullish Momentum and Key Strike Levels

The options market is heavily skewed toward bullish positioning, with $350–$370 call options dominating open interest ahead of Friday’s expiration. This concentration suggests institutional activity or retail speculation targeting a rebound toward $378, the price target cited by multiple analysts. The $370 call (OI: 5,329) and $350 call (OI: 5,091) are particularly noteworthy, as they align with UNH’s 30-day support/resistance range (302.69–304.34) and its 200-day moving average at $407.28. While the MACD histogram (-0.61) hints at near-term bearish momentum, the RSI at 67.5 indicates overbought conditions could trigger a pullback to test key support levels.

Contrasting Put Open Interest

Put open interest is concentrated at $300–$340 strikes, with the $340 put (OI: 2,411) and $300 put (OI: 2,437) showing significant bearish positioning. However, the low put/call ratio (0.49) suggests market participants are more confident in a rebound than a deep selloff. This divergence could create volatility if UNH fails to hold above $333.14 (middle Bollinger Band), triggering a test of the $297.45 lower band.

News-Driven Narrative and Sentiment Alignment

Recent news reinforces the bullish case for UNH. Truist and UBS raised price targets to $378, citing improved Medicare Advantage star ratings and operational efficiency. The partnership with Plus Therapeutics for a CNS cancer diagnostic tool also positions UNH to expand its oncology portfolio, aligning with the options market’s focus on $370–$400 strikes. However, challenges like Medicare enrollment shortfalls and rising medical costs remain risks. The recent 8% rebound following enrollment progress updates suggests the stock could retest $349.97 if the $333.14 support holds.

Actionable Trading Opportunities

1. Options Play: Buy the $350 call (Friday expiration) at $343.43. This strike offers leverage if UNH rebounds to $378, with a breakeven at $350 + premium. For a longer-term play, the $400 call (next Friday expiration) at $343.43 provides exposure to a potential breakout above $368.83 (upper Bollinger Band).
2. Stock Play: Enter near $302.69–$304.34 support with a stop-loss below $297.45. Target $378 if the 200-day MA ($407.28) is breached, or $349.97 if the stock consolidates within the $297.45–$368.83 range.

Volatility on the Horizon

The options data and analyst upgrades point to a critical juncture for UNH. If the $333.14 support holds, the stock could rally toward $378, validating the bullish call open interest at $350–$370. Conversely, a breakdown below $297.45 would trigger a reevaluation of the long-term ranging pattern. Traders should monitor Medicare enrollment updates and regulatory developments, as these could amplify volatility in either direction. The key takeaway: position for a $378 target with tight risk management, leveraging the options market’s focus on $350–$370 as a catalyst.