UBS noted the Supreme Court has not released its decision on King vs. Burwell but has two more opinion release days prior to the summer, namely June 22 and June 29. The case will decide if the government can extend ACA tax credit subsidies for health care on state-run and federal exchanges. The firm said the court does have the flexibility to add more release days, but with vacations and teaching obligations it is likely the decision will be rendered before the official end of the court's term. UBS also noted the two swing votes, Justices Kennedy and Roberts, have agreed 74% of the time. Publicly traded hospital owners include Community Health (CYH), HCA Holdings (HCA), LifePoint Hospitals (LPNT), Tenet (THC) and Universal Health (UHS). Publicly traded health insurers include UnitedHealth (UNH), Aetna (AET), Anthem (ANTM), Cigna (CI) and Humana (HUM).

Deutsche Bank analyst George Hill raised the firm's price target on UnitedHealth to $562 from $545 and keeps a Buy rating on the shares. The company reported a Q1 earnings beat with many moving pieces caused by the cyberattack on Change Healthcare, which left earnings quality and guidance up to investor interpretation, the analyst tells investors in a research note. The firm sees the full impact of the hack, as well as conservatism around cost trend and utilization would impact UnitedHealth earnings by only 2% for the full year.

Notable gainers among liquid option names this morning include Genuine Parts (GPC) $159.09 +15.03, Globe Life (GL) $66.97 +3.74, Anthem (ELV) $532.10 +23.13, United Continental (UAL) $50.59 +1.84, and UnitedHealth (UNH) $494.80 +15.81.

Unusual total active option classes on open include: Wrap Technologies (WRAP), AstraZeneca (AZN), JetBlue (JBLU), United Continental (UAL), Taiwan Semi (TSM), Nokia (NOK), EBay (EBAY), Maplebear Inc (CART), Airbnb (ABNB), and UnitedHealth (UNH).

RBC Capital analyst Ben Hendrix lowered the firm's price target on UnitedHealth to $555 from $596 but keeps an Outperform rating on the shares. The company reported a "better than feared" Q1, but the debate over utilization trends is expected to persist through the first half as excess reserves skew the medical care ratio picture, the analyst tells investors in a research note. RBC also notes that its added caution reflects UnitedHealth's "reduced claims visibility".