Options Traders Target UnitedHealth Stock Despite Steep 2025 Losses

UnitedHealth Group (UNH) has experienced a surge in options trading volume over the past 10 sessions, with 3,313,688 calls and 4,843,914 puts traded, despite the stock's 39.1% year-to-date decline driven by rising medical costs and CEO departure. The weekly 5/23 300-strike call was the most popular contract, and the stock is currently up 1.9% at $307.50, attempting to recover from a recent low of $269.13.

Analysis

UnitedHealth Group (UNH) shares have experienced a significant downturn in 2025, declining 39.1% year-to-date, primarily attributed to escalating medical costs, particularly within its Medicare Advantage plans, and the unexpected departure of CEO Andrew Witty. Despite these challenges, the stock has seen a surge in options activity over the past two weeks, with 4,843,914 puts and 3,313,688 calls traded in the last 10 sessions, indicating heightened investor engagement and a greater volume of bearish bets. The weekly 5/23 300-strike call emerged as the most popular contract, suggesting notable speculative or hedging interest around this specific strike price. Recently, UNH shares have shown signs of a tentative recovery, last trading 1.9% higher at $307.50 and marking a potential fourth consecutive day of gains. This modest uptrend follows a sharp fall to $269.13 on May 16, its lowest point since April 2020, which occurred after two substantial bear gaps in April and early May, reflecting the prevailing strongly negative sentiment (ticker sentiment score: -0.7) surrounding the company.

Key Decisions for Investors

• Investors should exercise caution regarding the recent stock price rebound, given the substantial 39.1% year-to-date decline in 2025 driven by fundamental challenges such as rising medical costs and CEO departure, alongside a strongly negative ticker sentiment score of -0.7.
• The high options volume, with puts (4,843,914) significantly outnumbering calls (3,313,688) over the last 10 sessions, signals prevailing bearish sentiment or significant hedging activity, warranting close monitoring of trading patterns and implied volatility.
• Closely monitor future developments concerning medical cost trends, especially within Medicare Advantage plans, and the appointment of new leadership, as these are critical factors that will influence the company's outlook and stock performance.
• Evaluate the sustainability of the stock's attempt to recover from its May 16 low of $269.13, its lowest since April 2020, particularly in light of the preceding major bear gaps and the ongoing fundamental headwinds.