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 13 options trades for ServiceNow.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 69%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $33,500, and 12, calls, for a total amount of $611,698.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $550.0 to $810.0 for ServiceNow over the last 3 months.

Analyzing Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in ServiceNow's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to ServiceNow's substantial trades, within a strike price spectrum from $550.0 to $810.0 over the preceding 30 days.

ServiceNow 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

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.

In light of the recent options history for ServiceNow, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of ServiceNow

• Trading volume stands at 293,959, with NOW's price up by 1.32%, positioned at $784.0.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 70 days.

What Analysts Are Saying About ServiceNow

In the last month, 5 experts released ratings on this stock with an average target price of $842.0.

• Maintaining their stance, an analyst from RBC Capital continues to hold a Outperform rating for ServiceNow, targeting a price of $850.
• Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for ServiceNow, targeting a price of $870.
• An analyst from Truist Securities persists with their Hold rating on ServiceNow, maintaining a target price of $750.
• Consistent in their evaluation, an analyst from Piper Sandler keeps a Overweight rating on ServiceNow with a target price of $830.
• An analyst from Goldman Sachs has decided to maintain their Buy rating on ServiceNow, which currently sits at a price target of $910.

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 ServiceNow options trades with real-time alerts from Benzinga Pro.