A Closer Look at Trade Desk's Options Market Dynamics

Investors with a lot of money to spend have taken a bullish stance on Trade Desk TTD.

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 TTD, 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 12 uncommon options trades for Trade Desk.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $819,362, and 8 are calls, for a total amount of $338,725.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $50.0 and $95.0 for Trade Desk, spanning the last three months.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Trade Desk's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Trade Desk's significant trades, within a strike price range of $50.0 to $95.0, over the past month.

Trade Desk Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

About Trade Desk

The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, native, and social) on different devices like computers, smartphones, digital out of home, and connected TVs. It utilizes data to optimize the performance of ad impressions purchased. The firm's platform is referred to as a demand-side platform in the digital ad industry. The firm generates its revenue from fees based on a percentage of what its clients spend on advertising. The Trade Desk became a public company in 2016 and has since increased revenue at a 43% average annual rate. During that period, it has been profitable with operating margins of 10%-28%.

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

Present Market Standing of Trade Desk

• With a volume of 2,432,822, the price of TTD is down -1.6% at $81.24.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 77 days.

Expert Opinions on Trade Desk

5 market experts have recently issued ratings for this stock, with a consensus target price of $88.4.

• Maintaining their stance, an analyst from Benchmark continues to hold a Sell rating for Trade Desk, targeting a price of $42.
• An analyst from Keybanc persists with their Overweight rating on Trade Desk, maintaining a target price of $100.
• An analyst from Piper Sandler persists with their Overweight rating on Trade Desk, maintaining a target price of $105.
• An analyst from Susquehanna has decided to maintain their Positive rating on Trade Desk, which currently sits at a price target of $110.
• Reflecting concerns, an analyst from Stephens & Co. lowers its rating to Overweight with a new price target of $85.

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 Trade Desk, Benzinga Pro gives you real-time options trades alerts.