Behind the Scenes of ARM Holdings's Latest Options Trends

Investors with a lot of money to spend have taken a bearish stance on ARM Holdings ARM.

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 ARM, 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 39 uncommon options trades for ARM Holdings.

This isn't normal.

The overall sentiment of these big-money traders is split between 46% bullish and 53%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $267,754, and 33 are calls, for a total amount of $2,986,046.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $80.0 and $180.0 for ARM Holdings, spanning the last three months.

Volume & Open Interest Development

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 ARM Holdings'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 ARM Holdings's whale trades within a strike price range from $80.0 to $180.0 in the last 30 days.

ARM Holdings Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

About ARM Holdings

Arm Holdings is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.

After a thorough review of the options trading surrounding ARM Holdings, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Where Is ARM Holdings Standing Right Now?

• With a trading volume of 5,563,048, the price of ARM is down by -0.82%, reaching $130.2.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 62 days from now.

What The Experts Say On ARM Holdings

Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $145.0.

• An analyst from Daiwa Capital has revised its rating downward to Neutral, adjusting the price target to $130.
• An analyst from Mizuho has decided to maintain their Buy rating on ARM Holdings, which currently sits at a price target of $160.
• An analyst from New Street Research has revised its rating downward to Neutral, adjusting the price target to $110.
• Maintaining their stance, an analyst from Rosenblatt continues to hold a Buy rating for ARM Holdings, targeting a price of $180.

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 ARM Holdings, Benzinga Pro gives you real-time options trades alerts.