KLA's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bullish stance on KLA KLAC.

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 KLAC, 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 11 uncommon options trades for KLA.

This isn't normal.

The overall sentiment of these big-money traders is split between 54% bullish and 45%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $166,575, and 6 are calls, for a total amount of $248,556.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $520.0 to $920.0 for KLA over the last 3 months.

Volume & Open Interest Trends

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for KLA's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of KLA's whale trades within a strike price range from $520.0 to $920.0 in the last 30 days.

KLA Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

About KLA

KLA is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segment of semiconductor process control, wherein machines inspect semiconductor wafers during research and development and manufacturing for defects and verify precise measurements. In this section of the market, KLA holds a majority share. It also has a small exposure to the etch and deposition segments of the WFE market. It counts as top customers the largest chipmakers in the world, including TSMC and Samsung.

Having examined the options trading patterns of KLA, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

KLA's Current Market Status

• With a trading volume of 360,586, the price of KLAC is down by -0.03%, reaching $614.72.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 78 days from now.

What The Experts Say On KLA

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $644.0.

• An analyst from Cantor Fitzgerald has revised its rating downward to Neutral, adjusting the price target to $625.
• An analyst from Raymond James has decided to maintain their Outperform rating on KLA, which currently sits at a price target of $625.
• Reflecting concerns, an analyst from Cantor Fitzgerald lowers its rating to Neutral with a new price target of $625.
• An analyst from Wells Fargo has decided to maintain their Overweight rating on KLA, which currently sits at a price target of $705.
• An analyst from Goldman Sachs persists with their Buy rating on KLA, maintaining a target price of $640.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest KLA options trades with real-time alerts from Benzinga Pro.