ServiceNow's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bullish stance on ServiceNow NOW.

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 NOW, 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 10 uncommon options trades for ServiceNow.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 30%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $149,460, and 5 are calls, for a total amount of $1,057,224.

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 $870.0 to $960.0 for ServiceNow over the last 3 months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of ServiceNow stands at 88.89, with a total volume reaching 280.00. 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 $870.0 to $960.0, throughout the last 30 days.

ServiceNow 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

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.

Current Position of ServiceNow

• With a volume of 270,267, the price of NOW is down -0.22% at $942.6.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 12 days.

What Analysts Are Saying About ServiceNow

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $1007.0.

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 Barclays persists with their Overweight rating on ServiceNow, maintaining a target price of $980. * Maintaining their stance, an analyst from Wells Fargo continues to hold a Overweight rating for ServiceNow, targeting a price of $1025. * Maintaining their stance, an analyst from UBS continues to hold a Buy rating for ServiceNow, targeting a price of $1055. * Consistent in their evaluation, an analyst from BMO Capital keeps a Outperform rating on ServiceNow with a target price of $1025. * An analyst from Evercore ISI Group has decided to maintain their Outperform rating on ServiceNow, which currently sits at a price target of $950.

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.