What the Options Market Tells Us About ServiceNow

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 positions 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.

Today, Benzinga's options scanner spotted 9 options trades for ServiceNow.

This isn't normal.

The overall sentiment of these big-money traders is split between 22% bullish and 77%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $37,260, and 8, calls, for a total amount of $655,198.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $600.0 to $980.0 for ServiceNow over the last 3 months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for ServiceNow'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 ServiceNow's whale activity within a strike price range from $600.0 to $980.0 in the last 30 days.

ServiceNow Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

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.

Following our analysis of the options activities associated with ServiceNow, we pivot to a closer look at the company's own performance.

Where Is ServiceNow Standing Right Now?

• Currently trading with a volume of 100,741, the NOW's price is up by 0.39%, now at $802.51.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 75 days.

Expert Opinions on ServiceNow

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $851.0.

• Consistent in their evaluation, an analyst from Barclays keeps a Overweight rating on ServiceNow with a target price of $870.
• Consistent in their evaluation, an analyst from Baird keeps a Outperform rating on ServiceNow with a target price of $870.
• Maintaining their stance, an analyst from UBS continues to hold a Buy rating for ServiceNow, targeting a price of $885.
• Consistent in their evaluation, an analyst from Oppenheimer keeps a Outperform rating on ServiceNow with a target price of $800.
• An analyst from Piper Sandler has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $830.

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 ServiceNow with Benzinga Pro for real-time alerts.