Spotlight on 3M: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on 3M MMM.

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 MMM, 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 3M.

This isn't normal.

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

Out of all of the special options we uncovered, 3 are puts, for a total amount of $98,405, and 5 are calls, for a total amount of $271,631.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $130.0 to $165.0 for 3M during the past quarter.

Analyzing Volume & Open Interest

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 3M'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 3M's whale trades within a strike price range from $130.0 to $165.0 in the last 30 days.

3M Call and Put Volume: 30-Day Overview

Biggest Options Spotted:

About 3M

3M, a multinational conglomerate founded in 1902, sells tens of thousands of products ranging from sponges to respirators. The firm is well known for its extensive research and development capabilities, and it is a pioneer in inventing new use cases for its proprietary technologies. 3M is organized across three business segments: safety and industrial (representing around 44% of revenue), transportation and electronics (36%), and consumer (20%). The firm recently spun off its healthcare business, now known as Solventum. Nearly half of 3M's revenue comes from outside the Americas.

After a thorough review of the options trading surrounding 3M, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

3M's Current Market Status

• With a trading volume of 2,270,974, the price of MMM is down by -0.1%, reaching $153.0.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 35 days from now.

Professional Analyst Ratings for 3M

In the last month, 2 experts released ratings on this stock with an average target price of $137.5.

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. * In a cautious move, an analyst from RBC Capital downgraded its rating to Underperform, setting a price target of $96. * Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on 3M with a target price of $179.

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 3M options trades with real-time alerts from Benzinga Pro.