Someone with a lot of money to spend has taken a bearish stance on Affirm Holdings AFRM.
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with AFRM, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 11 uncommon options trades for Affirm Holdings.
This isn't normal.
The overall sentiment of these big-money traders is split between 36% bullish and 63%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $78,080, and 9 are calls, for a total amount of $357,611.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $15.0 to $25.0 for Affirm Holdings over the last 3 months.
Volume & Open Interest Development
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 Affirm Holdings'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 Affirm Holdings's whale activity within a strike price range from $15.0 to $25.0 in the last 30 days.
Affirm Holdings Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| AFRM | CALL | SWEEP | BEARISH | 01/19/24 | $25.00 | $76.4K | 4.4K | 649 |
| AFRM | CALL | SWEEP | BEARISH | 01/19/24 | $22.50 | $62.2K | 2.5K | 1.7K |
| AFRM | CALL | SWEEP | BEARISH | 02/16/24 | $15.00 | $49.8K | 95 | 1 |
| AFRM | PUT | TRADE | BEARISH | 11/17/23 | $17.50 | $42.2K | 2.4K | 319 |
| AFRM | PUT | SWEEP | BEARISH | 11/17/23 | $20.00 | $35.8K | 786 | 222 |
Where Is Affirm Holdings Standing Right Now?
- With a volume of 22,373,109, the price of AFRM is up 6.77% at $19.16.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 70 days.
What The Experts Say On Affirm Holdings:
- Barclays downgraded its action to Overweight with a price target of $19
- Wedbush has decided to maintain their Underperform rating on Affirm Holdings, which currently sits at a price target of $10.
- Morgan Stanley has decided to maintain their Equal-Weight rating on Affirm Holdings, which currently sits at a price target of $15.
- JP Morgan has decided to maintain their Neutral rating on Affirm Holdings, which currently sits at a price target of $18.
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 Affirm Holdings, 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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