What the Options Market Tells Us About KLA

Investors with a lot of money to spend have taken a bearish 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 8 uncommon options trades for KLA.

This isn't normal.

The overall sentiment of these big-money traders is split between 37% bullish and 62%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $524,880, and 5 are calls, for a total amount of $312,390.

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 $785.0 and $965.0 for KLA, spanning the last three months.

Volume & Open Interest Trends

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 $785.0 to $965.0 in the last 30 days.

KLA Option Activity Analysis: 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.

Present Market Standing of KLA

• With a volume of 2,106,320, the price of KLAC is down -8.13% at $756.14.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 83 days.

Expert Opinions on KLA

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $880.6.

• Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on KLA with a target price of $980.
• Consistent in their evaluation, an analyst from Cantor Fitzgerald keeps a Neutral rating on KLA with a target price of $950.
• An analyst from TD Cowen persists with their Hold rating on KLA, maintaining a target price of $760.
• Consistent in their evaluation, an analyst from Goldman Sachs keeps a Buy rating on KLA with a target price of $838.
• An analyst from Stifel has decided to maintain their Buy rating on KLA, which currently sits at a price target of $875.

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.