High-rolling investors have positioned themselves bullish on ServiceNow NOW, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in NOW often signals that someone has privileged information.
Today, Benzinga's options scanner spotted 8 options trades for ServiceNow. This is not a typical pattern.
The sentiment among these major traders is split, with 37% bullish and 25% bearish. Among all the options we identified, there was one put, amounting to $93,600, and 7 calls, totaling $400,265.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $700.0 to $1000.0 for ServiceNow over the recent 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 ServiceNow'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 ServiceNow's whale activity within a strike price range from $700.0 to $1000.0 in the last 30 days.
ServiceNow 30-Day Option Volume & Interest Snapshot
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NOW | CALL | SWEEP | BEARISH | 06/20/25 | $40.8 | $35.6 | $40.8 | $1000.00 | $200.4K | 361 | 50 |
| NOW | PUT | TRADE | BULLISH | 09/20/24 | $32.5 | $30.6 | $31.2 | $700.00 | $93.6K | 232 | 31 |
| NOW | CALL | TRADE | BULLISH | 03/21/25 | $80.2 | $73.9 | $77.72 | $800.00 | $38.8K | 29 | 5 |
| NOW | CALL | SWEEP | NEUTRAL | 09/20/24 | $54.4 | $54.3 | $54.3 | $750.00 | $38.0K | 73 | 8 |
| NOW | CALL | TRADE | BULLISH | 05/24/24 | $18.7 | $16.3 | $18.7 | $727.50 | $33.6K | 68 | 18 |
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
- Trading volume stands at 273,064, with NOW's price up by 2.18%, positioned at $737.37.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 70 days.
Expert Opinions on ServiceNow
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $858.2.
- Consistent in their evaluation, an analyst from Wells Fargo keeps a Overweight rating on ServiceNow with a target price of $900.
- Consistent in their evaluation, an analyst from Morgan Stanley keeps a Overweight rating on ServiceNow with a target price of $830.
- An analyst from Citigroup persists with their Buy rating on ServiceNow, maintaining a target price of $906.
- In a cautious move, an analyst from Wolfe Research downgraded its rating to Outperform, setting a price target of $830.
- An analyst from JMP Securities has revised its rating downward to Market Outperform, adjusting the price target to $825.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest ServiceNow options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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