Decoding Diamondback Energy's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on Diamondback Energy FANG.

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 FANG, 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 Diamondback Energy.

This isn't normal.

The overall sentiment of these big-money traders is split between 47% bullish and 41%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $410,350, and 12 are calls, for a total amount of $707,191.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $160.0 to $270.0 for Diamondback Energy over the last 3 months.

Insights into Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Diamondback Energy options trades today is 291.67 with a total volume of 1,467.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Diamondback Energy's big money trades within a strike price range of $160.0 to $270.0 over the last 30 days.

Diamondback Energy 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

About Diamondback Energy

Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2023, the company reported net proven reserves of 2.2 billion barrels of oil equivalent. Net production averaged about 448,000 barrels per day in 2023, at a ratio of 59% oil, 21% natural gas liquids, and 20% natural gas.

Present Market Standing of Diamondback Energy

• Currently trading with a volume of 2,110,699, the FANG's price is up by 3.98%, now at $188.5.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 32 days.

Expert Opinions on Diamondback Energy

In the last month, 5 experts released ratings on this stock with an average target price of $216.2.

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. * Reflecting concerns, an analyst from RBC Capital lowers its rating to Outperform with a new price target of $220. * Consistent in their evaluation, an analyst from Wells Fargo keeps a Overweight rating on Diamondback Energy with a target price of $219. * Consistent in their evaluation, an analyst from UBS keeps a Buy rating on Diamondback Energy with a target price of $223. * Reflecting concerns, an analyst from JP Morgan lowers its rating to Overweight with a new price target of $182. * An analyst from Susquehanna has decided to maintain their Positive rating on Diamondback Energy, which currently sits at a price target of $237.

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 Diamondback Energy with Benzinga Pro for real-time alerts.