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 19 uncommon options trades for ServiceNow.
This isn't normal.
The overall sentiment of these big-money traders is split between 36% bullish and 63%, bearish.
Out of all of the special options we uncovered, 9 are puts, for a total amount of $562,454, and 10 are calls, for a total amount of $393,120.
Predicted Price Range
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $550.0 to $780.0 for ServiceNow during the past quarter.
Analyzing Volume & Open Interest
In today's trading context, the average open interest for options of ServiceNow stands at 233.93, with a total volume reaching 559.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in ServiceNow, situated within the strike price corridor from $550.0 to $780.0, throughout the last 30 days.
ServiceNow 30-Day Option Volume & Interest Snapshot
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| NOW | PUT | TRADE | NEUTRAL | 01/17/25 | $650.00 | $272.0K | 83 | 50 |
| NOW | CALL | SWEEP | BEARISH | 01/19/24 | $680.00 | $67.0K | 358 | 60 |
| NOW | CALL | TRADE | BEARISH | 01/19/24 | $550.00 | $62.0K | 449 | 4 |
| NOW | PUT | TRADE | BEARISH | 01/17/25 | $780.00 | $57.6K | 10 | 5 |
| NOW | PUT | TRADE | BEARISH | 02/16/24 | $730.00 | $42.0K | 23 | 10 |
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.
ServiceNow's Current Market Status
- With a volume of 459,344, the price of NOW is up 1.1% at $706.36.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 14 days.
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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