Bullish order flow is piling into deep-out-of-the-money LEAP calls at the $400 strike—about 48% above today’s $270 spot price. Simultaneously, hefty 2026 $260 sweep reveals additional appetite for near-the-money upside over the next eight months. The footprint suggests institutional desks positioning on the view that any short-term price dips in a defensive heavyweight like UnitedHealth Group won’t stick for long.
Amongst these 5 notable trades, the biggest print was a $5.1 million sweep on the June 2027 $400 calls. Paired with an additional $3 million split order, that same $400 strike soaked up more than $8 million in new premium in a single session. Although the 2,724-contract volume is modest relative to the 7,778 contracts already outstanding, the activity shows option desks remain confident that UnitedHealth Group can power through its current rough patch.
Volume and Open Interest Data
Daily turnover exploded from just 43 contracts on 5/12 to 3,411 contracts on 5/15—an 80-fold jump in three trading sessions. Each successive day set a higher high, showing a clear build-up of interest. OI more than doubled (+146%) over the same window, climbing from 3,165 to 7,778 contracts. Crucially, net additions of +2,368 on 5/14 and +2,215 on 5/15 confirm that most of the prints were opening, not closing, positions.
Traders were willing to pay up for optionality. IV popped from the high-30% range to 48.4% on the heaviest-volume day—a ~9-percentage-point spike in 24 hours—even as the contract’s mark-to-market price slid from 42.75 to 38.25. The price slide reflects UNH’s 13% price slide since yesterday’s close. Rising volume, expanding open interest, and a sharp IV uptick point to fresh bullish conviction being established in these long-dated $400 calls.
More Notable Options Trades Observed
Beyond the surge in long-dated call buying, traders also showed a healthy appetite for near-term bullish put selling. Around $3 million in premium flowed into short puts at the $250 and $260 strikes, underscoring confidence that the $250-$260 zone will continue to act as intraday support for UNH.
Recent Events
UnitedHealth Group Inc. (NYSE: UNH), one of the largest health insurers in the U.S., witnessed a dramatic drop in its share price on May 13, 2025, plunging over 17% in a single trading day. This sharp decline – which began before markets open Tuesday morning – marked one of the company’s worst days on the stock market in years, wiping out tens of billions in market capitalization. A confluence of negative developments—ranging from an unexpected leadership transition to rising healthcare costs—rattled investor confidence and sent shockwaves across the healthcare sector. In addition to these troubles, reports have surfaced that UNH is now being probed by the Department of Justice for possible Medicare fraud.
About UnitedHealth Group (UNH)
UnitedHealth Group (UNH) is one of America’s largest healthcare companies and a component of the Dow Jones Industrial Average. The company operates through two main segments:
- UnitedHealthcare: Provides health benefit plans and services to individuals, employers, and Medicare/Medicaid beneficiaries
- Optum: Delivers information and technology-enabled health services, including OptumRx (pharmacy services), OptumHealth (care delivery and management), and OptumInsight (healthcare data analytics)
As of 2023, UnitedHealth Group served approximately 149 million individuals worldwide and generated revenue exceeding $324 billion, making it one of the largest companies by revenue in the United States.
Ratings Overview
The latest analyst recommendations for UNH present a mixed outlook, reflecting both caution and confidence among major research firms. The consensus among these agencies is mixed, with a tilt toward neutral to moderately positive. While some analysts urge caution or patience, others see potential for outperformance, highlighting a divergence in sentiment for UNH as of mid-May 20251:
| Agency | Rating/Recommendation | Updated Date |
|---|---|---|
| CFRA | ★★ (2 stars) | 05/14/2025 |
| Market Edge | Neutral from Long | 04/28/2025 |
| Argus | Hold | 04/21/2025 |
| Morningstar | ★★★★ (4 stars) | 05/13/2025 |
| LSEG | Outperform | 05/14/2025 |
| Schwab Equity Ratings | B | 05/14/2025 |
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Disclaimer: Options trading involves significant risk and is not suitable for all investors. You may lose the entire investment, and certain strategies may result in losses exceeding the initial amount invested. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice. Always consult a financial or tax advisor before making investment decisions.
