Spotify Technology's Options: A Look at What the Big Money is Thinking

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 17 uncommon options trades for Spotify Technology.

This isn't normal.

The overall sentiment of these big-money traders is split between 17% bullish and 70%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $436,454, and 10 are calls, for a total amount of $532,220.

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 $290.0 and $410.0 for Spotify Technology, spanning the last 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 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 $290.0 to $410.0 over the preceding 30 days.

Spotify Technology Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

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.

In light of the recent options history for Spotify Technology, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Spotify Technology

• Currently trading with a volume of 682,133, the SPOT's price is up by 0.8%, now at $371.95.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 28 days.

What Analysts Are Saying About Spotify Technology

5 market experts have recently issued ratings for this stock, with a consensus target price of $418.0.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from Keybanc has decided to maintain their Overweight rating on Spotify Technology, which currently sits at a price target of $440. * Consistent in their evaluation, an analyst from Pivotal Research keeps a Buy rating on Spotify Technology with a target price of $510. * An analyst from Evercore ISI Group persists with their Outperform rating on Spotify Technology, maintaining a target price of $460. * In a cautious move, an analyst from Cantor Fitzgerald downgraded its rating to Neutral, setting a price target of $340. * An analyst from Cantor Fitzgerald has revised its rating downward to Neutral, adjusting the price target to $340.

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.