UnitedHealth Stock on Track for Worst Day Since April

Core Insights - UnitedHealth Group Inc (NYSE:UNH) is experiencing its worst single-day percentage loss since April, with shares down 19.8% to $281.96 following mixed fourth-quarter earnings results [1] - The company's profits of $2.11 per share beat estimates by one cent, but revenue of $113.2 billion fell short of expectations [1] - A proposal from the Centers for Medicare & Medicaid Services to raise Medicare Advantage rates by only 0.09%, significantly below the anticipated 4-6% increase, is negatively impacting the stock [1] - UnitedHealth's soft revenue guidance has also contributed to the decline, prompting Piper Sandler to lower its price target from $417 to $396 [1] Stock Performance - Over the past 12 months, UnitedHealth's equity has dropped more than 48%, making it the worst-performing stock on the Dow Jones Industrial Average [2] - The stock recently fell to its lowest level since August, breaking below the supportive 120-day moving average [2] Options Activity - There is unusual options activity for UnitedHealth, with 480,000 calls and 342,000 puts exchanged, which is eight times the normal volume [4] - The most popular contract is the January 15, 2027 600-strike call, with new positions being sold to open [4] - Short-term options traders are exhibiting a more bearish sentiment than usual, as indicated by the Schaeffer's put/call open interest ratio (SOIR) sitting in the 97th percentile of its annual range [4] Volatility Insights - UnitedHealth's Schaeffer's Volatility Scorecard (SVS) is at an elevated 97 out of 100, indicating that the stock has tended to exceed options traders' volatility expectations over the past year [5]