Investors with a lot of money to spend have taken a bearish stance on ServiceNow NOW.
And retail traders should know.
We noticed this today when the positions 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 NOW, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 8 options trades for ServiceNow.
This isn't normal.
The overall sentiment of these big-money traders is split between 25% bullish and 50%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $38,480, and 7, calls, for a total amount of $1,570,892.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $700.0 to $830.0 for ServiceNow over the recent three months.
Analyzing 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 ServiceNow's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to ServiceNow's substantial trades, within a strike price spectrum from $700.0 to $830.0 over the preceding 30 days.
ServiceNow Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NOW | CALL | TRADE | BULLISH | 10/18/24 | $37.2 | $33.2 | $37.1 | $830.00 | $1.2M | 573 | 332 |
| NOW | CALL | TRADE | BULLISH | 10/18/24 | $37.8 | $35.4 | $37.8 | $830.00 | $113.4K | 573 | 364 |
| NOW | CALL | TRADE | NEUTRAL | 08/16/24 | $7.6 | $6.6 | $7.1 | $820.00 | $56.8K | 304 | 80 |
| NOW | CALL | TRADE | NEUTRAL | 08/16/24 | $16.6 | $13.4 | $15.3 | $800.00 | $45.9K | 343 | 31 |
| NOW | CALL | SWEEP | BEARISH | 08/16/24 | $16.4 | $16.1 | $16.4 | $800.00 | $43.6K | 343 | 42 |
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
- With a volume of 247,457, the price of NOW is up 2.9% at $798.77.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 76 days.
What Analysts Are Saying About ServiceNow
In the last month, 5 experts released ratings on this stock with an average target price of $856.0.
- Maintaining their stance, an analyst from Deutsche Bank continues to hold a Buy rating for ServiceNow, targeting a price of $900.
- An analyst from Truist Securities has decided to maintain their Hold rating on ServiceNow, which currently sits at a price target of $780.
- Consistent in their evaluation, an analyst from Piper Sandler keeps a Overweight rating on ServiceNow with a target price of $850.
- Maintaining their stance, an analyst from JMP Securities continues to hold a Market Outperform rating for ServiceNow, targeting a price of $850.
- An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $900.
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 ServiceNow with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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