U.S. health-care stocks draw bullish options flows as Dow hits record

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U.S. health-care stocks bullish

Highlights

State Street Health Care Select Sector SPDR ETF (XLV) sees $11 million of $13 million in options volume tied to bullish calls, with 5,300 calls bought versus just over 1,000 puts.
Humana and Centene hit new one-year highs, UnitedHealth Group nears its May peak with 87% of $135 million options premium in calls, while Eli Lilly rallies 4% with $145 million in call-heavy options activity.
State Street Financial Select Sector ETF (XLF) records almost 380,000 options trades with premium evenly split between calls and puts, indicating weaker bullish conviction in financials compared to health care.

Health-care rally gains options backing

As reported by CNBC, traders turned aggressively toward the State Street Health Care Select Sector SPDR ETF, XLV, during Thursday's advance. Data from ThinkOrSwim show about 5,300 calls were bought in the fund, compared with just over 1,000 puts, while more than $11 million of the roughly $13 million traded in the ETF was tied to calls.

The move comes as health-care shares lead a broader market rise even after chip stocks fall 1.5%. The S&P 500 gains 0.4% with 9 of 11 sectors advancing, and several large health-care names move toward new highs.

Among the strongest performers are Humana and Centene, both of which reach new one-year highs, while UnitedHealth Group closes just below the one-year high it set in May. UnitedHealth also records the heaviest options activity in the group, with 87% of the $135 million traded in options premium tied to calls.

Eli Lilly also attracts strong bullish positioning as the weight-loss drug maker rallies more than 4% to just under the all-time highs reached a week earlier. Calls outpace puts by more than two to one in the stock, with $145 million in options premium traded and more than 10,500 calls bought, more than twice the number sold and three times the put volume.

Financial sector shows weaker conviction

The health-care options surge is especially notable because financial stocks also participate in Thursday's market rebound after a period of underperformance. But the options response in the State Street Financial Select Sector ETF, XLF, is far less directional despite much heavier overall volume.

According to SpotGamma data cited in the report, nearly 380,000 options trade in XLF, with premium split roughly evenly between calls and puts. More calls are sold than bought in the fund, suggesting traders are showing less outright bullish conviction in financials than in health care even as both sectors help power the broader market higher.

Our earlier coverage of the U.S. Supreme Court’s Medicaid expansion decision explained how the 5–4 ruling allowed states to continue broadening coverage under the Affordable Care Act, potentially affecting around 2 million people. We also noted the debate over state budget pressure alongside rising healthcare costs, highlighting how policy shifts can influence sentiment across healthcare names.

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