Investors with a lot of money to spend have taken a bullish stance on Lam Research LRCX.
And retail traders should know.
We noticed this today when the positions 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 LRCX, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 8 options trades for Lam Research.
This isn't normal.
The overall sentiment of these big-money traders is split between 75% bullish and 25%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $26,000, and 7, calls, for a total amount of $292,828.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $270.0 to $760.0 for Lam Research during the past quarter.
Volume & Open Interest Development
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Lam Research's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Lam Research's substantial trades, within a strike price spectrum from $270.0 to $760.0 over the preceding 30 days.
Lam Research Call and Put Volume: 30-Day Overview
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| LRCX | CALL | TRADE | BULLISH | 12/15/23 | $730.00 | $60.0K | 280 | 739 |
| LRCX | CALL | SWEEP | BULLISH | 01/19/24 | $680.00 | $55.4K | 277 | 10 |
| LRCX | CALL | SWEEP | BULLISH | 12/15/23 | $760.00 | $49.7K | 263 | 54 |
| LRCX | CALL | TRADE | NEUTRAL | 12/15/23 | $270.00 | $45.6K | 2 | 0 |
| LRCX | CALL | TRADE | BEARISH | 12/15/23 | $715.00 | $28.0K | 200 | 5 |
About Lam Research
Lam Research is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segments of deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear cut second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.
After a thorough review of the options trading surrounding Lam Research, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Lam Research
- With a volume of 332,596, the price of LRCX is up 1.0% at $710.19.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 44 days.
Professional Analyst Ratings for Lam Research
Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $760.0.
- An analyst from Morgan Stanley downgraded its action to Equal-Weight with a price target of $720.
- An analyst from Redburn Atlantic downgraded its action to Buy with a price target of $800.
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 Lam Research, 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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