A Surge in Bullish Bets on UnitedHealth Shares

Unitedhealth US91324P1021

While UnitedHealth Group's stock price experienced a slight decline last Friday, falling 0.77% to $330.91, a remarkable surge was unfolding in the derivatives market. Trading volume for call options on the healthcare giant exploded by 69%, signaling a wave of speculative activity from traders positioning for a potential rebound.

On Friday, a total of 438,212 call option contracts on UnitedHealth changed hands. This figure represents a substantial increase from the average daily volume of 259,388 contracts. This aggressive accumulation of bullish derivative positions stands in stark contrast to the equity's current price level, which remains approximately 41% below its annual peak. Such a pronounced shift often indicates that market participants are anticipating either a near-term recovery or a period of heightened price volatility.

Dividend Deadline Adds to the Short-Term Calculus

Adding a layer of strategic timing, Monday, December 8, 2025, marks the ex-dividend date for UnitedHealth’s upcoming quarterly distribution. Shareholders of record by this date will be eligible to receive the cash dividend of $2.21 per share. These corporate payout deadlines frequently generate short-term trading demand, which may be a contributing factor behind the elevated options market interest. With an annualized payout of $8.84 per share, the stock currently offers a dividend yield in the range of 2.6% to 2.7%.

Major Investors Accumulate Amid Operational Refocus

Institutional investors appear to be using the period of share price pressure to build or enlarge their stakes. Recent portfolio disclosures reveal significant buying activity. Investment firm Amundi increased its UnitedHealth holdings by 33.8% in the second quarter, bringing its total to over 6.19 million shares. Dodge & Cox was even more assertive, boosting its position by a striking 117.7%.

Concurrently, UnitedHealth is streamlining its operations to enhance profitability, which has recently been pressured by rising medical costs. The company confirmed on December 5 the sale of its South American unit, Banmedica, to Patria Investments for approximately $1 billion. This divestiture is part of a strategic effort to sharpen focus on core markets.

Valuation and Analyst Outlook Suggest Potential

Despite the stock's retreat, the analyst community continues to see appreciable upside. The consensus price target among market experts sits at $385.54, implying a potential gain of more than 16% from current levels. Wolf Research recently reinforced this view by raising its target price to $375.

Trading at a price-to-earnings (P/E) ratio of 17.2, UnitedHealth shares are valued at a notable discount to the industry average P/E of 22.4. The confluence of a relatively cheap valuation, steadfast institutional accumulation, and a sudden frenzy of bullish option bets sends a clear signal: the market is actively searching for a durable price floor. Whether this speculative positioning proves prescient will become evident in the trading sessions ahead.