UnitedHealth (UNH) is up 15% YTD but recently started to pullback off its 431 highs. Friday’s selloff brought it back to the rising 21 week EMA which has been supportive on pullbacks the prior year. Weekly RSI still above 50 which is showing a bull trend intact. UNH is a lower beta name in the healthcare sector that could see some positive rotation if markets weaken into the end of September. The XLV Healthcare ETF has seen some bullish options flows into the recent pullback and UNH itself has plenty of bullish positioning in open interest including a recent $3.4M buy of Dec 440 calls on 8/19 and numerous opening put sales between the 400-420 strikes in Dec 2021, Jan 2022, and Jan 2023 expirations. The October options IV has pushed up to over 30% on the recent selloff so selling a bull put spread into the 21 week EMA can offer a nice risk/reward for a bounce or sideways grind up into October. 

Trade to consider: Sell the UNH October 400/390 bull put spread at $3.30 or better.