American Express's Options: A Look at What the Big Money is Thinking

Investors with a lot of money to spend have taken a bearish stance on American Express AXP.

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 AXP, 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 12 uncommon options trades for American Express.

This isn't normal.

The overall sentiment of these big-money traders is split between 16% bullish and 83%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $506,514, and 7 are calls, for a total amount of $525,826.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $140.0 to $195.0 for American Express over the recent three months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of American Express stands at 1789.6, with a total volume reaching 2,255.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in American Express, situated within the strike price corridor from $140.0 to $195.0, throughout the last 30 days.

American Express Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

About American Express

American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. Since 2018, it has operated in three segments: global consumer services, global commercial services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.

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

Where Is American Express Standing Right Now?

• Currently trading with a volume of 1,722,403, the AXP's price is up by 0.12%, now at $162.75.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 67 days.

Expert Opinions on American Express

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $164.6.

• An analyst from Piper Sandler has elevated its stance to Neutral, setting a new price target at $151.
• In a positive move, an analyst from Citigroup has upgraded their rating to Neutral and adjusted the price target to $154.
• An analyst from Morgan Stanley has decided to maintain their Overweight rating on American Express, which currently sits at a price target of $175.
• An analyst from TD Cowen downgraded its action to Market Perform with a price target of $158.
• Consistent in their evaluation, an analyst from RBC Capital keeps a Outperform rating on American Express with a target price of $185.

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