Investors with a lot of money to spend have taken a bearish stance on Datadog DDOG.
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 DDOG, 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 9 uncommon options trades for Datadog.
This isn't normal.
The overall sentiment of these big-money traders is split between 33% bullish and 66%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $834,514, and 2 are calls, for a total amount of $80,928.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $92.5 to $134.0 for Datadog over the recent three months.
Analyzing Volume & Open Interest
In terms of liquidity and interest, the mean open interest for Datadog options trades today is 628.75 with a total volume of 4,808.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Datadog's big money trades within a strike price range of $92.5 to $134.0 over the last 30 days.
Datadog Call and Put Volume: 30-Day Overview
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| DDOG | PUT | SWEEP | NEUTRAL | 02/16/24 | $125.00 | $360.0K | 828 | 1.0K |
| DDOG | PUT | SWEEP | BULLISH | 02/16/24 | $125.00 | $152.5K | 828 | 672 |
| DDOG | PUT | SWEEP | BEARISH | 02/16/24 | $125.00 | $143.0K | 828 | 275 |
| DDOG | PUT | SWEEP | BEARISH | 02/16/24 | $125.00 | $59.2K | 828 | 389 |
| DDOG | CALL | TRADE | BULLISH | 01/26/24 | $134.00 | $48.4K | 251 | 494 |
About Datadog
Datadog is a cloud-native company that focuses on analyzing machine data. The firm's product portfolio, delivered as software-as-a-service, allows a client to monitor and analyze its entire IT infrastructure. Datadog's platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to utilize it for a variety of different applications throughout their businesses.
After a thorough review of the options trading surrounding Datadog, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Datadog's Current Market Status
- With a trading volume of 1,689,717, the price of DDOG is down by -0.87%, reaching $131.82.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 21 days from now.
What The Experts Say On Datadog
Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $143.33333333333334.
- Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on Datadog with a target price of $150.
- An analyst from BMO Capital has revised its rating downward to Outperform, adjusting the price target to $140.
- An analyst from Truist Securities has decided to maintain their Buy rating on Datadog, which currently sits at a price target of $140.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Datadog with Benzinga Pro for real-time alerts.
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