Deep-pocketed investors have adopted a bearish approach towards ServiceNow NOW, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in NOW usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 10 extraordinary options activities for ServiceNow. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 30% leaning bullish and 60% bearish. Among these notable options, 6 are puts, totaling $536,554, and 4 are calls, amounting to $314,477.
Expected Price Movements
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $400.0 and $1280.0 for ServiceNow, spanning the last three months.
Volume & Open Interest Development
In today's trading context, the average open interest for options of ServiceNow stands at 74.38, with a total volume reaching 103.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in ServiceNow, situated within the strike price corridor from $400.0 to $1280.0, throughout the last 30 days.
ServiceNow 30-Day Option Volume & Interest Snapshot
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NOW | PUT | TRADE | BULLISH | 01/17/25 | $38.3 | $34.4 | $34.5 | $780.00 | $345.0K | 348 | 0 |
| NOW | CALL | TRADE | NEUTRAL | 12/18/26 | $501.8 | $488.2 | $494.0 | $400.00 | $98.8K | 16 | 2 |
| NOW | CALL | TRADE | BEARISH | 02/21/25 | $96.5 | $92.3 | $94.0 | $840.00 | $94.0K | 12 | 10 |
| NOW | CALL | SWEEP | BULLISH | 11/15/24 | $87.0 | $84.1 | $84.2 | $820.00 | $84.1K | 81 | 10 |
| NOW | PUT | SWEEP | BEARISH | 12/20/24 | $45.2 | $43.8 | $45.2 | $810.00 | $45.2K | 26 | 23 |
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.
Following our analysis of the options activities associated with ServiceNow, we pivot to a closer look at the company's own performance.
ServiceNow's Current Market Status
- Currently trading with a volume of 340,221, the NOW's price is up by 0.46%, now at $864.13.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 42 days.
Professional Analyst Ratings for ServiceNow
1 market experts have recently issued ratings for this stock, with a consensus target price of $900.0.
- An analyst from Needham downgraded its action to Buy with a price target of $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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