Deep-pocketed investors have adopted a bearish approach towards ServiceNow NOW, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in NOW usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 29 extraordinary options activities for ServiceNow. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 24% leaning bullish and 75% bearish. Among these notable options, 6 are puts, totaling $276,850, and 23 are calls, amounting to $3,047,637.
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 $500.0 to $730.0 for ServiceNow during the past quarter.
Volume & Open Interest Trends
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 ServiceNow'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 ServiceNow's whale activity within a strike price range from $500.0 to $730.0 in the last 30 days.
ServiceNow Option Volume And Open Interest Over Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| NOW | CALL | SWEEP | NEUTRAL | 12/15/23 | $520.00 | $1.0M | 95 | 58 |
| NOW | CALL | TRADE | BULLISH | 12/15/23 | $520.00 | $372.4K | 95 | 78 |
| NOW | CALL | TRADE | BULLISH | 01/19/24 | $530.00 | $359.2K | 166 | 78 |
| NOW | CALL | TRADE | BEARISH | 01/17/25 | $570.00 | $200.0K | 45 | 0 |
| NOW | CALL | TRADE | NEUTRAL | 01/19/24 | $610.00 | $91.8K | 161 | 9 |
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.
Having examined the options trading patterns of ServiceNow, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
ServiceNow's Current Market Status
- With a trading volume of 601,513, the price of NOW is down by -0.03%, reaching $698.85.
- Current RSI values indicate that the stock is may be overbought.
- Next earnings report is scheduled for 44 days from now.
What The Experts Say On ServiceNow
Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $747.5.
- An analyst from Wells Fargo persists with their Overweight rating on ServiceNow, maintaining a target price of $725.
- Consistent in their evaluation, an analyst from Argus Research keeps a Buy rating on ServiceNow with a target price of $770.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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