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 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 NOW, 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 18 uncommon 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 special options we uncovered, 3 are puts, for a total amount of $143,000, and 15 are calls, for a total amount of $786,400.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $400.0 to $770.0 for ServiceNow during the past quarter.
Insights into Volume & Open Interest
In today's trading context, the average open interest for options of ServiceNow stands at 92.07, with a total volume reaching 202.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in ServiceNow, situated within the strike price corridor from $400.0 to $770.0, throughout the last 30 days.
ServiceNow Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| NOW | CALL | TRADE | BEARISH | 07/19/24 | $610.00 | $78.8K | 0 | 5 |
| NOW | CALL | TRADE | BULLISH | 07/19/24 | $610.00 | $78.7K | 0 | 5 |
| NOW | CALL | TRADE | BEARISH | 07/19/24 | $640.00 | $66.7K | 9 | 0 |
| NOW | CALL | TRADE | BEARISH | 06/21/24 | $600.00 | $64.6K | 188 | 0 |
| NOW | CALL | TRADE | BEARISH | 08/16/24 | $630.00 | $60.3K | 26 | 4 |
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.
After a thorough review of the options trading surrounding ServiceNow, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of ServiceNow
- Currently trading with a volume of 73,731, the NOW's price is down by -1.03%, now at $748.04.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 36 days.
What The Experts Say On ServiceNow
In the last month, 1 experts released ratings on this stock with an average target price of $820.0.
- An analyst from Stifel downgraded its action to Buy with a price target of $820.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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