Market Whales and Their Recent Bets on ARM Options

Investors with a lot of money to spend have taken a bullish stance on ARM Holdings ARM.

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 ARM, 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 9 uncommon options trades for ARM Holdings.

This isn't normal.

The overall sentiment of these big-money traders is split between 77% bullish and 22%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $169,050, and 7 are calls, for a total amount of $298,522.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $45.0 to $65.0 for ARM Holdings over the recent three months.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of ARM Holdings stands at 1202.62, with a total volume reaching 740.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in ARM Holdings, situated within the strike price corridor from $45.0 to $65.0, throughout the last 30 days.

ARM Holdings Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

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.

Following our analysis of the options activities associated with ARM Holdings, we pivot to a closer look at the company's own performance.

Present Market Standing of ARM Holdings

• Trading volume stands at 3,224,241, with ARM's price down by -0.21%, positioned at $61.37.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 76 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 $62.5.

• In a cautious move, an analyst from Morgan Stanley downgraded its rating to Equal-Weight, setting a price target of $55.
• Reflecting concerns, an analyst from Wells Fargo lowers its rating to Overweight with a new price target of $70.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for ARM Holdings with Benzinga Pro for real-time alerts.