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By Chris McKhann

UnitedHealth ChartUnitedHealth Group is rising again today, and the continued rally in the stock has bought in the option traders.

The health benefits company is up 2.24 percent to $26.89 in midday trading, regaining Friday's losses and bouncing off the technical trendline that has been in place since the shares bottomed just above $16 in early March.

Today's option trade in UNH appears to be a "ratio spread," buying 7,500 of the July 25 calls for $2.90 and $2.85 while selling 15,000 of the July 30 calls in one block for $0.75.

This would be a net debit of $1.375 on the trade, which is the maximum risk with the stock anywhere below $25. The maximum gain comes if the stock is at that $30 strike at expiration but takes one-for-one losses with shares above roughly $33.65.

This type of trade is bullish but does not expect the stock to move much above its recent highs.

(Chart courtesy of tradeMONSTER)

Source: UnitedHealth Rallies, Options Follow