Decoding American Express's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on American Express AXP.

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 AXP, 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 13 uncommon options trades for American Express.

This isn't normal.

The overall sentiment of these big-money traders is split between 61% bullish and 30%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $101,290, and 11 are calls, for a total amount of $978,583.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $220.0 to $310.0 for American Express over the recent three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for American Express's options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of American Express's whale activity within a strike price range from $220.0 to $310.0 in the last 30 days.

American Express Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

About American Express

American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. Since 2018, it has operated in three segments: global consumer services, global commercial services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.

Following our analysis of the options activities associated with American Express, we pivot to a closer look at the company's own performance.

Current Position of American Express

• With a trading volume of 1,663,248, the price of AXP is up by 5.0%, reaching $289.73.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 79 days from now.

What Analysts Are Saying About American Express

5 market experts have recently issued ratings for this stock, with a consensus target price of $263.6.

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. * Consistent in their evaluation, an analyst from Morgan Stanley keeps a Equal-Weight rating on American Express with a target price of $248. * An analyst from Barclays has decided to maintain their Equal-Weight rating on American Express, which currently sits at a price target of $250. * Consistent in their evaluation, an analyst from Monness, Crespi, Hardt keeps a Buy rating on American Express with a target price of $300. * Maintaining their stance, an analyst from TD Cowen continues to hold a Hold rating for American Express, targeting a price of $268. * Maintaining their stance, an analyst from Morgan Stanley continues to hold a Equal-Weight rating for American Express, targeting a price of $252.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest American Express options trades with real-time alerts from Benzinga Pro.