Spotlight on NRG Energy: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bearish stance on NRG Energy NRG.

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 NRG, 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 10 uncommon options trades for NRG Energy.

This isn't normal.

The overall sentiment of these big-money traders is split between 10% bullish and 80%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $283,672, and 6 are calls, for a total amount of $191,220.

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 $65.0 and $85.0 for NRG Energy, spanning the last three 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 NRG Energy'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 NRG Energy's whale activity within a strike price range from $65.0 to $85.0 in the last 30 days.

NRG Energy Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

About NRG Energy

NRG Energy is one of the largest retail energy providers in the us, with 6 million customers. Vivint Smart Home, which NRG acquired in 2023, has 2 million home services customers. NRG also is one of the largest us independent power producers, with 13 gigawatts of coal, gas, and oil power generation capacity primarily in Texas. NRG exited Chapter 11 bankruptcy as a stand-alone entity in December 2003.

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

NRG Energy's Current Market Status

• Trading volume stands at 2,420,220, with NRG's price up by 1.56%, positioned at $71.49.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 14 days.

What The Experts Say On NRG Energy

2 market experts have recently issued ratings for this stock, with a consensus target price of $74.0.

• An analyst from Morgan Stanley persists with their Equal-Weight rating on NRG Energy, maintaining a target price of $63.
• Maintaining their stance, an analyst from Wells Fargo continues to hold a Overweight rating for NRG Energy, targeting a price 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 NRG Energy, Benzinga Pro gives you real-time options trades alerts.