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 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 SE, 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 8 uncommon options trades for Sea.

This isn't normal.

The overall sentiment of these big-money traders is split between 12% bullish and 87%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $307,005, and 3 are calls, for a total amount of $237,070.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $50.0 to $90.0 for Sea over the recent three months.

Insights into Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Sea's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Sea's substantial trades, within a strike price spectrum from $50.0 to $90.0 over the preceding 30 days.

Sea 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

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.

Sea's Current Market Status

• Currently trading with a volume of 1,869,986, the SE's price is down by -0.73%, now at $72.44.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 63 days.

Professional Analyst Ratings for Sea

In the last month, 5 experts released ratings on this stock with an average target price of $75.4.

• Maintaining their stance, an analyst from TD Cowen continues to hold a Hold rating for Sea, targeting a price of $64.
• Reflecting concerns, an analyst from Wedbush lowers its rating to Outperform with a new price target of $72.
• An analyst from Deutsche Bank downgraded its action to Hold with a price target of $60.
• Consistent in their evaluation, an analyst from Loop Capital keeps a Buy rating on Sea with a target price of $94.
• Consistent in their evaluation, an analyst from Benchmark keeps a Buy rating on Sea with a target price of $87.

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 Sea, Benzinga Pro gives you real-time options trades alerts.