Investors with a lot of money to spend have taken a bearish stance on ARM Holdings ARM.
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 ARM, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 8 options trades for ARM Holdings.
This isn't normal.
The overall sentiment of these big-money traders is split between 37% bullish and 62%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $29,250, and 7, calls, for a total amount of $317,254.
What's The Price Target?
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $65.0 and $72.0 for ARM Holdings, spanning the last three months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for ARM Holdings options trades today is 1995.86 with a total volume of 602.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for ARM Holdings's big money trades within a strike price range of $65.0 to $72.0 over the last 30 days.
ARM Holdings Call and Put Volume: 30-Day Overview
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| ARM | CALL | TRADE | BEARISH | 01/17/25 | $70.00 | $92.3K | 557 | 2 |
| ARM | CALL | SWEEP | BEARISH | 12/22/23 | $65.00 | $67.1K | 1.0K | 0 |
| ARM | CALL | SWEEP | NEUTRAL | 01/05/24 | $72.00 | $40.4K | 103 | 0 |
| ARM | CALL | SWEEP | NEUTRAL | 01/05/24 | $72.00 | $33.6K | 103 | 445 |
| ARM | CALL | SWEEP | BULLISH | 01/19/24 | $68.50 | $32.1K | 25 | 0 |
About ARM Holdings
Arm Holdings is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.
Present Market Standing of ARM Holdings
- Trading volume stands at 2,995,005, with ARM's price up by 0.55%, positioned at $69.25.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 58 days.
Professional Analyst Ratings for ARM Holdings
A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $70.0.
- An analyst from Wells Fargo downgraded its action to Overweight with a price target of $70.
- An analyst from Deutsche Bank downgraded its action to Hold with a price target of $70.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest ARM Holdings options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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