Investors with a lot of money to spend have taken a bullish stance on ServiceNow NOW.
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 NOW, 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 9 uncommon options trades for ServiceNow.
This isn't normal.
The overall sentiment of these big-money traders is split between 55% bullish and 44%, bearish.
Out of all of the special options we uncovered, 4 are puts, for a total amount of $451,040, and 5 are calls, for a total amount of $341,220.
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 $420.0 to $720.0 for ServiceNow during the past quarter.
Volume & Open Interest Development
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for ServiceNow's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across ServiceNow's significant trades, within a strike price range of $420.0 to $720.0, over the past month.
ServiceNow Call and Put Volume: 30-Day Overview
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| NOW | PUT | TRADE | BULLISH | 01/19/24 | $680.00 | $176.1K | 178 | 81 |
| NOW | CALL | SWEEP | BEARISH | 02/16/24 | $680.00 | $120.6K | 158 | 40 |
| NOW | PUT | SWEEP | BULLISH | 01/19/24 | $650.00 | $110.0K | 505 | 100 |
| NOW | CALL | TRADE | BULLISH | 01/19/24 | $420.00 | $106.6K | 60 | 4 |
| NOW | PUT | SWEEP | BEARISH | 01/16/26 | $680.00 | $102.0K | 8 | 10 |
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.
Current Position of ServiceNow
- With a volume of 501,000, the price of NOW is down -0.72% at $682.7.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 50 days.
Expert Opinions on ServiceNow
A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $702.5.
- An analyst from RBC Capital has decided to maintain their Outperform rating on ServiceNow, which currently sits at a price target of $680.
- An analyst from Wells Fargo has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $725.
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 ServiceNow with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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