Options Traders Brace for 5% Swing in UnitedHealth Stock Ahead of Q3 Earnings
UnitedHealth Group Incorporated (NYSE:UNH) is scheduled to release its third-quarter financial results on Tuesday, with options traders positioning for a price swing of more than 5% after the announcement. Wall Street analysts expect the health insurance provider to post earnings of $4.14 per share on $111.49 billion in revenue.
Pricing on Friday's at-the-money straddles indicates an expected post-earnings move of approximately 5.55% in either direction. Based on a reference share price of $376.42, options market pricing implies an expected trading range between $355.53 and $397.31 following the results.
Market positioning reflects a modest downside tilt ahead of the report. Total open interest stands at 51,661 put contracts compared with 42,039 call contracts, creating a put/call ratio of 1.23. Among near-term weekly options expiring October 16, the $360 put holds the largest open interest among downside strikes at 4,569 contracts, while the $400 call leads upside strikes with 6,177 contracts. Farther out, open interest is highest at the $400 call with 38,408 contracts and the $200 put with 41,343 contracts.
Key points
- Analysts expect UnitedHealth Group Incorporated (NYSE:UNH) to report Q3 earnings of $4.14 per share on revenue of $111.49 billion on Tuesday.
- Options straddles expiring Friday imply a post-earnings price move of roughly 5.55% in either direction.
- The expected post-earnings trading range spans from $355.53 to $397.31 based on a benchmark stock price of $376.42.
- Options sentiment is slightly bearish with a put/call open interest ratio of 1.23 across 51,661 put and 42,039 call contracts.
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What are analysts expecting for UnitedHealth Q3 earnings?
Analysts project UnitedHealth Group Incorporated to report third-quarter earnings of $4.14 per share on revenue of $111.49 billion.
How much is UnitedHealth stock expected to move after earnings?
Options straddles suggest an expected stock movement of about 5.55% in either direction, implying a trading range between $355.53 and $397.31.
What is the options sentiment for UNH stock ahead of earnings?
Options sentiment leans slightly bearish with a put/call ratio of 1.23, reflecting 51,661 put contracts versus 42,039 call contracts.