Investors with a lot of money to spend have taken a bearish stance on Spotify Technology SPOT.
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 SPOT, 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 46 uncommon options trades for Spotify Technology.
This isn't normal.
The overall sentiment of these big-money traders is split between 39% bullish and 52%, bearish.
Out of all of the special options we uncovered, 10 are puts, for a total amount of $455,940, and 36 are calls, for a total amount of $5,582,418.
Projected Price Targets
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $250.0 and $400.0 for Spotify Technology, spanning the last three months.
Volume & Open Interest Trends
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Spotify Technology's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Spotify Technology's substantial trades, within a strike price spectrum from $250.0 to $400.0 over the preceding 30 days.
Spotify Technology Option Volume And Open Interest Over Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SPOT | CALL | TRADE | BULLISH | 10/18/24 | $10.55 | $10.15 | $10.55 | $380.00 | $633.0K | 54 | 4.4K |
| SPOT | CALL | SWEEP | BULLISH | 10/18/24 | $14.55 | $14.4 | $14.4 | $380.00 | $575.2K | 54 | 1.6K |
| SPOT | CALL | TRADE | BEARISH | 10/18/24 | $12.75 | $12.35 | $12.35 | $380.00 | $494.0K | 54 | 802 |
| SPOT | CALL | SWEEP | BULLISH | 10/18/24 | $12.55 | $11.6 | $12.25 | $380.00 | $490.0K | 54 | 401 |
| SPOT | CALL | SWEEP | BEARISH | 10/18/24 | $13.75 | $13.45 | $13.45 | $380.00 | $427.7K | 54 | 1.1K |
About Spotify Technology
Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 602 million monthly active users at the end of 2023. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 86% and 14% of Spotify's 2023 total revenue, respectively.
Having examined the options trading patterns of Spotify Technology, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Where Is Spotify Technology Standing Right Now?
- With a volume of 1,511,811, the price of SPOT is down -1.54% at $338.64.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 82 days.
What Analysts Are Saying About Spotify Technology
5 market experts have recently issued ratings for this stock, with a consensus target price of $390.2.
- An analyst from Benchmark has decided to maintain their Buy rating on Spotify Technology, which currently sits at a price target of $430.
- An analyst from Barclays has decided to maintain their Overweight rating on Spotify Technology, which currently sits at a price target of $360.
- Consistent in their evaluation, an analyst from TD Cowen keeps a Hold rating on Spotify Technology with a target price of $356.
- An analyst from Keybanc persists with their Overweight rating on Spotify Technology, maintaining a target price of $410.
- An analyst from Macquarie has decided to maintain their Outperform rating on Spotify Technology, which currently sits at a price target of $395.
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 Spotify Technology, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
|---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
