Investors with a lot of money to spend have taken a bearish 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 15 uncommon options trades for ServiceNow.
This isn't normal.
The overall sentiment of these big-money traders is split between 13% bullish and 86%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $787,430, and 8 are calls, for a total amount of $655,150.
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 $560.0 to $705.0 for ServiceNow over the last 3 months.
Analyzing Volume & Open Interest
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 $560.0 to $705.0 in the last 30 days.
ServiceNow 30-Day Option Volume & Interest Snapshot
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| NOW | PUT | SWEEP | BEARISH | 01/19/24 | $680.00 | $335.4K | 584 | 26 |
| NOW | CALL | TRADE | BEARISH | 02/16/24 | $700.00 | $286.6K | 335 | 34 |
| NOW | PUT | TRADE | BEARISH | 02/16/24 | $680.00 | $188.1K | 197 | 9 |
| NOW | CALL | TRADE | BULLISH | 01/12/24 | $560.00 | $133.0K | 0 | 10 |
| NOW | PUT | TRADE | BEARISH | 01/05/24 | $705.00 | $72.0K | 67 | 35 |
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
- Trading volume stands at 258,744, with NOW's price down by -3.88%, positioned at $679.1.
- RSI indicators show the stock to be is currently neutral between overbought and oversold.
- Earnings announcement expected in 22 days.
Expert Opinions on ServiceNow
In the last month, 1 experts released ratings on this stock with an average target price of $770.0.
- 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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