Spotlight on Cloudflare: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on Cloudflare NET.

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 NET, 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 8 uncommon options trades for Cloudflare.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 25%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $243,130, and 6 are calls, for a total amount of $348,204.

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 $60.0 to $175.0 for Cloudflare during the past quarter.

Volume & Open Interest Trends

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 Cloudflare'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 Cloudflare's whale activity within a strike price range from $60.0 to $175.0 in the last 30 days.

Cloudflare Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

About Cloudflare

Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.

Having examined the options trading patterns of Cloudflare, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Cloudflare's Current Market Status

• Trading volume stands at 1,034,851, with NET's price up by 4.65%, positioned at $124.76.
• RSI indicators show the stock to be is currently neutral between overbought and oversold.
• Earnings announcement expected in 38 days.

Expert Opinions on Cloudflare

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $151.4.

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. * Consistent in their evaluation, an analyst from Goldman Sachs keeps a Buy rating on Cloudflare with a target price of $161. * Maintaining their stance, an analyst from Piper Sandler continues to hold a Neutral rating for Cloudflare, targeting a price of $131. * Consistent in their evaluation, an analyst from Mizuho keeps a Neutral rating on Cloudflare with a target price of $140. * An analyst from Needham has decided to maintain their Buy rating on Cloudflare, which currently sits at a price target of $145. * In a cautious move, an analyst from Citizens Capital Markets downgraded its rating to Market Outperform, setting a price target of $180.

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 Cloudflare with Benzinga Pro for real-time alerts.