ServiceNow Options Trading: A Deep Dive into Market Sentiment

Investors with a lot of money to spend have taken a bearish stance on ServiceNow NOW.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with NOW, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 32 uncommon options trades for ServiceNow.

This isn't normal.

The overall sentiment of these big-money traders is split between 37% bullish and 62%, bearish.

Out of all of the special options we uncovered, 11 are puts, for a total amount of $618,590, and 21 are calls, for a total amount of $1,094,297.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $350.0 and $850.0 for ServiceNow, spanning the last three months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for ServiceNow's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across ServiceNow's significant trades, within a strike price range of $350.0 to $850.0, over the past month.

ServiceNow Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

About ServiceNow

ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management, expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service.

After a thorough review of the options trading surrounding ServiceNow, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of ServiceNow

• Trading volume stands at 607,935, with NOW's price up by 2.22%, positioned at $765.72.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 2 days.

What The Experts Say On ServiceNow

In the last month, 5 experts released ratings on this stock with an average target price of $793.0.

• Maintaining their stance, an analyst from JMP Securities continues to hold a Market Outperform rating for ServiceNow, targeting a price of $825.
• An analyst from Oppenheimer persists with their Outperform rating on ServiceNow, maintaining a target price of $800.
• Maintaining their stance, an analyst from Needham continues to hold a Buy rating for ServiceNow, targeting a price of $900.
• An analyst from Stifel has decided to maintain their Buy rating on ServiceNow, which currently sits at a price target of $740.
• Maintaining their stance, an analyst from Truist Securities continues to hold a Hold rating for ServiceNow, targeting a price of $700.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for ServiceNow, Benzinga Pro gives you real-time options trades alerts.