What the Options Market Tells Us About Datadog

Investors with a lot of money to spend have taken a bullish stance on Datadog DDOG.

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 DDOG, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 18 options trades for Datadog.

This isn't normal.

The overall sentiment of these big-money traders is split between 72% bullish and 22%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $76,516, and 17, calls, for a total amount of $1,277,924.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $102.0 to $120.0 for Datadog over the recent three months.

Volume & Open Interest Trends

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Datadog's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Datadog's significant trades, within a strike price range of $102.0 to $120.0, over the past month.

Datadog 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

About Datadog

Datadog is a cloud-native company that focuses on analyzing machine data. The firm's product portfolio, delivered via software as a service, allows a client to monitor and analyze its entire IT infrastructure. Datadog's platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to utilize it for a variety of applications throughout their businesses.

Following our analysis of the options activities associated with Datadog, we pivot to a closer look at the company's own performance.

Present Market Standing of Datadog

• Currently trading with a volume of 888,013, the DDOG's price is down by -0.73%, now at $115.48.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 81 days.

Professional Analyst Ratings for Datadog

In the last month, 5 experts released ratings on this stock with an average target price of $144.6.

• An analyst from Scotiabank has decided to maintain their Sector Outperform rating on Datadog, which currently sits at a price target of $135.
• In a cautious move, an analyst from Wedbush downgraded its rating to Outperform, setting a price target of $155.
• Maintaining their stance, an analyst from Needham continues to hold a Buy rating for Datadog, targeting a price of $140.
• Reflecting concerns, an analyst from Cantor Fitzgerald lowers its rating to Overweight with a new price target of $150.
• An analyst from BTIG has elevated its stance to Buy, setting a new price target at $143.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Datadog options trades with real-time alerts from Benzinga Pro.