Someone with a lot of money to spend has taken a bearish stance on Dow DOW.
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with DOW, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 18 options trades for Dow.
This isn't normal.
The overall sentiment of these big-money traders is split between 38% bullish and 61%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $29,149, and 17, calls, for a total amount of $1,161,123..
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $50.0 to $80.0 for Dow over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Dow options trades today is 3581.25 with a total volume of 2,585.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Dow's big money trades within a strike price range of $50.0 to $80.0 over the last 30 days.
Dow Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| DOW | CALL | TRADE | BULLISH | 01/20/23 | $57.50 | $420.0K | 1.7K | 303 |
| DOW | CALL | TRADE | BEARISH | 09/16/22 | $62.50 | $78.0K | 578 | 86 |
| DOW | CALL | TRADE | BULLISH | 01/20/23 | $50.00 | $73.5K | 2.1K | 3 |
| DOW | CALL | SWEEP | BULLISH | 01/19/24 | $72.50 | $64.2K | 14 | 73 |
| DOW | CALL | TRADE | BEARISH | 09/16/22 | $62.50 | $61.5K | 578 | 146 |
Where Is Dow Standing Right Now?
- With a volume of 2,395,000, the price of DOW is up 6.26% at $71.77.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 0 days.
What The Experts Say On Dow:
- Wolfe Research upgraded its action to Peer Perform with a price target of $64
- Mizuho has decided to maintain their Neutral rating on Dow, which currently sits at a price target of $68.
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.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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