Sea Options Trading: A Deep Dive into Market Sentiment

Investors with a lot of money to spend have taken a bearish stance on Sea SE.

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 SE, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 11 options trades for Sea.

This isn't normal.

The overall sentiment of these big-money traders is split between 36% bullish and 45%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $41,400, and 10, calls, for a total amount of $527,549.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $55.0 to $75.0 for Sea over the last 3 months.

Insights into Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Sea's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Sea's significant trades, within a strike price range of $55.0 to $75.0, over the past month.

Sea Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

About Sea

Sea operates Southeast Asia's largest e-commerce company, Shopee, in terms of gross merchandise value and number of transactions. Sea started as a gaming business, Garena, but in 2015 expanded into e-commerce, which is now the main growth driver. Shopee is a hybrid C2C and B2C marketplace platform operating in eight core markets. Indonesia accounts for 35% of GMV, with the rest split mainly among Taiwan, Vietnam, Thailand, Malaysia, and the Philippines. For Garena, Free Fire was the most downloaded game in January 2022 and accounted for 74% of gaming revenue in 2021. Sea's third business, SeaMoney, provides mostly credit lending.

Having examined the options trading patterns of Sea, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Sea's Current Market Status

• With a volume of 915,084, the price of SE is down -1.71% at $65.0.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 7 days.

What Analysts Are Saying About Sea

A total of 4 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $81.25.

• An analyst from Barclays has decided to maintain their Overweight rating on Sea, which currently sits at a price target of $85.
• An analyst from Benchmark downgraded its action to Buy with a price target of $78.
• An analyst from B of A Securities has elevated its stance to Buy, setting a new price target at $70.
• Showing optimism, an analyst from Loop Capital upgrades its rating to Buy with a revised price target of $92.

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 Sea with Benzinga Pro for real-time alerts.