Investors with a lot of money to spend have taken a bearish stance on Microchip Technology MCHP.
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 MCHP, 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 Microchip Technology.
This isn't normal.
The overall sentiment of these big-money traders is split between 25% bullish and 75%, bearish.
Out of all of the special options we uncovered, 4 are puts, for a total amount of $159,517, and 4 are calls, for a total amount of $276,980.
Expected Price Movements
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $67.5 to $92.5 for Microchip Technology over the recent three months.
Analyzing Volume & Open Interest
In today's trading context, the average open interest for options of Microchip Technology stands at 3441.71, with a total volume reaching 2,314.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Microchip Technology, situated within the strike price corridor from $67.5 to $92.5, throughout the last 30 days.
Microchip Technology Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| MCHP | CALL | SWEEP | BULLISH | 11/15/24 | $1.55 | $1.4 | $1.5 | $92.50 | $120.6K | 7.1K | 905 |
| MCHP | CALL | SWEEP | BEARISH | 11/15/24 | $3.6 | $3.2 | $3.5 | $85.00 | $65.8K | 1.7K | 188 |
| MCHP | PUT | SWEEP | BEARISH | 04/17/25 | $3.4 | $3.1 | $3.4 | $67.50 | $59.5K | 35 | 175 |
| MCHP | CALL | SWEEP | BULLISH | 01/17/25 | $10.6 | $10.4 | $10.6 | $75.00 | $45.5K | 418 | 45 |
| MCHP | CALL | TRADE | BEARISH | 10/18/24 | $0.75 | $0.6 | $0.6 | $90.00 | $45.0K | 10.5K | 784 |
About Microchip Technology
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.
Where Is Microchip Technology Standing Right Now?
- With a volume of 2,959,783, the price of MCHP is up 0.89% at $81.02.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 34 days.
What Analysts Are Saying About Microchip Technology
In the last month, 1 experts released ratings on this stock with an average target price of $80.0.
Turn $1000 into $1270 in just 20 days?
20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Truist Securities has revised its rating downward to Hold, adjusting the price target to $80.
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 Microchip Technology with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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