Spotlight on ServiceNow: Analyzing the Surge in Options Activity

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 positions 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.

Today, Benzinga's options scanner spotted 8 options trades for ServiceNow.

This isn't normal.

The overall sentiment of these big-money traders is split between 37% bullish and 25%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $25,110, and 7, calls, for a total amount of $278,805.

Predicted Price Range

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $400.0 to $1200.0 for ServiceNow during the past quarter.

Volume & Open Interest Trends

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for ServiceNow's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across ServiceNow's significant trades, within a strike price range of $400.0 to $1200.0, over the past month.

ServiceNow 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

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.

Present Market Standing of ServiceNow

• With a trading volume of 151,472, the price of NOW is down by -0.49%, reaching $1017.05.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 63 days from now.

What The Experts Say On ServiceNow

In the last month, 5 experts released ratings on this stock with an average target price of $1032.0.

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 Canaccord Genuity persists with their Buy rating on ServiceNow, maintaining a target price of $1000. * An analyst from Mizuho has decided to maintain their Outperform rating on ServiceNow, which currently sits at a price target of $1070. * An analyst from Truist Securities has decided to maintain their Hold rating on ServiceNow, which currently sits at a price target of $900. * Maintaining their stance, an analyst from Wells Fargo continues to hold a Overweight rating for ServiceNow, targeting a price of $1150. * An analyst from Keybanc has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $1040.

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 ServiceNow, Benzinga Pro gives you real-time options trades alerts.