Check Out What Whales Are Doing With NOW

High-rolling investors have positioned themselves bearish on ServiceNow NOW, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in NOW often signals that someone has privileged information.

Today, Benzinga's options scanner spotted 12 options trades for ServiceNow. This is not a typical pattern.

The sentiment among these major traders is split, with 25% bullish and 75% bearish. Among all the options we identified, there was one put, amounting to $31,780, and 11 calls, totaling $640,508.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $360.0 to $840.0 for ServiceNow over the last 3 months.

Insights into Volume & Open Interest

In terms of liquidity and interest, the mean open interest for ServiceNow options trades today is 111.17 with a total volume of 61.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for ServiceNow's big money trades within a strike price range of $360.0 to $840.0 over the last 30 days.

ServiceNow Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

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

• Currently trading with a volume of 555,140, the NOW's price is up by 0.54%, now at $672.0.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 63 days.

Professional Analyst Ratings for ServiceNow

In the last month, 5 experts released ratings on this stock with an average target price of $645.6.

• An analyst from Wells Fargo has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $675.
• An analyst from Truist Securities downgraded its action to Hold with a price target of $575.
• An analyst from RBC Capital has decided to maintain their Outperform rating on ServiceNow, which currently sits at a price target of $680.
• Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for ServiceNow, targeting a price of $650.
• An analyst from Morgan Stanley has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $648.

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.