Spotify Technology's Options: A Look at What the Big Money is Thinking

Investors with a lot of money to spend have taken a bearish stance on Spotify Technology SPOT.

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 SPOT, 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 19 uncommon options trades for Spotify Technology.

This isn't normal.

The overall sentiment of these big-money traders is split between 31% bullish and 68%, bearish.

Out of all of the special options we uncovered, 8 are puts, for a total amount of $664,429, and 11 are calls, for a total amount of $480,055.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $160.0 to $220.0 for Spotify Technology during the past quarter.

Volume & Open Interest Trends

In today's trading context, the average open interest for options of Spotify Technology stands at 469.61, with a total volume reaching 2,942.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Spotify Technology, situated within the strike price corridor from $160.0 to $220.0, throughout the last 30 days.

Spotify Technology 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

About Spotify Technology

Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 489 million total listeners. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 87% and 13% of Spotify's 2022 total revenue, respectively.

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

Current Position of Spotify Technology

• Currently trading with a volume of 1,943,935, the SPOT's price is up by 1.1%, now at $190.0.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 33 days.

What Analysts Are Saying About Spotify Technology

In the last month, 5 experts released ratings on this stock with an average target price of $224.0.

• Reflecting concerns, an analyst from Rosenblatt lowers its rating to Neutral with a new price target of $150.
• An analyst from Baird has decided to maintain their Outperform rating on Spotify Technology, which currently sits at a price target of $225.
• Maintaining their stance, an analyst from Benchmark continues to hold a Buy rating for Spotify Technology, targeting a price of $260.
• In a positive move, an analyst from Pivotal Research has upgraded their rating to Buy and adjusted the price target to $265.
• Maintaining their stance, an analyst from Raymond James continues to hold a Outperform rating for Spotify Technology, targeting a price of $220.

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 Spotify Technology, Benzinga Pro gives you real-time options trades alerts.