UnitedHealth Stock Hits 52-Week Lows on Company Warnings

Options traders are targeting UNH at six times the intraday average volume

Deputy Editor
Jun 14, 2023 at 10:54 AM
facebook X logo linkedin


UnitedHealth Group Inc (NYSE:UNH) is dragging health insurer's lower today, after the company warned of greater medical costs in the second quarter and noted a higher-than-expected number of surgeries among adults aged 65 and older over the last couple months. At last glance, UNH was down 7.4% at $454.93. Earlier dropping as low as $445.68 -- its lowest level since November 2021 -- UnitedHealth Group stock is down 14.2% year-to-date. 

Options traders are chiming in at six times what's typically seen at this point, ahead of tomorrow's ex-dividend day. So far, 20,000 calls and 16,000 puts have been exchanged. Expiring at the end of this week, the June 450 put and 460 call are seeing the most activity, with new positions being opened at the latter. 

Over the past 10 weeks, calls have been much more popular than usual. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), UNH's 50-day call/put volume ratio of 1.89 ranks higher than 96% of readings from the past year. 

Now looks like a good time to weigh in on UNH with options, too, per its Schaeffer's Volatility Index (SVI) of 19%, which ranks in the low 6th percentile of its 12-month range. This means options traders are pricing in low volatility expectations at the moment. 

Analysts are of similarly bullish sentiment. Of the 19 in coverage, 17 carry a "buy" or better rating. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI