KLA's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bullish stance on KLA KLAC.

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 KLAC, 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 KLA.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 40%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $123,280, and 8 are calls, for a total amount of $349,580.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $500.0 to $870.0 for KLA during the past quarter.

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 KLA'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 KLA's whale activity within a strike price range from $500.0 to $870.0 in the last 30 days.

KLA Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

About KLA

KLA is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segment of semiconductor process control, wherein machines inspect semiconductor wafers during research and development and manufacturing for defects and verify precise measurements. In this section of the market, KLA holds a majority share. It also has a small exposure to the etch and deposition segments of the WFE market. It counts as top customers the largest chipmakers in the world, including TSMC and Samsung.

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

Present Market Standing of KLA

• Currently trading with a volume of 239,487, the KLAC's price is up by 2.83%, now at $750.59.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 71 days.

Expert Opinions on KLA

5 market experts have recently issued ratings for this stock, with a consensus target price of $737.0.

• Reflecting concerns, an analyst from Raymond James lowers its rating to Outperform with a new price target of $750.
• An analyst from Stifel has decided to maintain their Buy rating on KLA, which currently sits at a price target of $760.
• In a cautious move, an analyst from Jefferies downgraded its rating to Buy, setting a price target of $820.
• Maintaining their stance, an analyst from Barclays continues to hold a Underweight rating for KLA, targeting a price of $630.
• An analyst from Citigroup persists with their Buy rating on KLA, maintaining a target price of $725.

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 KLA with Benzinga Pro for real-time alerts.