UnitedHealth Stock Suffers Pre-Earnings Pullback

UNH options traders have been extremely bullish over the past 10 weeks

Deputy Editor
Jul 14, 2021 at 12:52 PM
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Blue chip UnitedHealth Group Inc (NYSE:UNH) is 0.6% lower on the charts this afternoon, last seen at $416.27, with traders most likely practicing caution ahead of earnings. UnitedHealth is slated to report second-quarter results before the open tomorrow, July 15. Below, we'll take a closer look at UNH's technical setup ahead of the event, as well as what the options market is expecting for the equity's post-earnings moves.

UnitedHealth stock dipped on the charts shortly after scoring a May 10, all-time high of $425.98 -- falling below $390 for the first time since mid-April. Since, UnitedHealth stock has managed to keep any notable further losses in check, and over the last month the security tacked on 4.5%, and UNH remains up 18.9% year-to-date.

UNHdaily

Looking at UNH's earnings, UnitedHealth stock has a history of mixed moves after reporting, with four positive and four negative post-earnings reactions going back two years. Over the past eight quarters, UnitedHealth stock has served up an average post-earnings swing of 3.2%, regardless of direction, and this time around, the options market is anticipating a move of equal magnitude.

UNH sports a 50-day call/put volume ratio of 2.16 at International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio stands in the 99th percentile of its annual range, indicating a heavy preference for long calls over puts during the past 10 weeks of trading.

 

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