High-rolling investors have positioned themselves bullish on Cummins CMI, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in CMI often signals that someone has privileged information.
Today, Benzinga's options scanner spotted 10 options trades for Cummins. This is not a typical pattern.
The sentiment among these major traders is split, with 60% bullish and 20% bearish. Among all the options we identified, there was one put, amounting to $95,969, and 9 calls, totaling $692,546.
Projected Price Targets
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $240.0 to $400.0 for Cummins during the past quarter.
Volume & Open Interest Trends
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Cummins'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 Cummins's whale trades within a strike price range from $240.0 to $400.0 in the last 30 days.
Cummins Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| CMI | CALL | TRADE | NEUTRAL | 01/16/26 | $47.5 | $43.0 | $45.4 | $360.00 | $127.1K | 132 | 29 |
| CMI | CALL | SWEEP | BULLISH | 01/16/26 | $28.6 | $26.1 | $28.6 | $400.00 | $114.4K | 339 | 50 |
| CMI | CALL | SWEEP | BULLISH | 01/16/26 | $37.0 | $34.0 | $37.0 | $380.00 | $111.0K | 27 | 80 |
| CMI | CALL | TRADE | BULLISH | 01/16/26 | $37.2 | $34.5 | $37.0 | $380.00 | $99.9K | 27 | 50 |
| CMI | PUT | SWEEP | BEARISH | 01/16/26 | $34.5 | $30.5 | $33.04 | $360.00 | $95.9K | 7 | 29 |
About Cummins
Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway machinery, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.
After a thorough review of the options trading surrounding Cummins, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Cummins
- With a volume of 267,274, the price of CMI is up 0.68% at $364.32.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 78 days.
What The Experts Say On Cummins
In the last month, 3 experts released ratings on this stock with an average target price of $383.3333333333333.
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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 Goldman Sachs persists with their Neutral rating on Cummins, maintaining a target price of $370. * An analyst from Evercore ISI Group upgraded its action to Outperform with a price target of $408. * An analyst from Baird persists with their Neutral rating on Cummins, maintaining a target price of $372.
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 Cummins, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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