Microchip Technology Unusual Options Activity For January 17

Investors with a lot of money to spend have taken a bullish stance on Microchip Technology MCHP.

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 this is an institution or just a wealthy individual, we don't know. But when something this big happens with MCHP, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 9 options trades for Microchip Technology.

This isn't normal.

The overall sentiment of these big-money traders is split between 55% bullish and 44%, bearish.

Out of all of the options we uncovered, 8 are puts, for a total amount of $999,251, and there was 1 call, for a total amount of $31,413.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $80.0 to $85.0 for Microchip Technology over the last 3 months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Microchip Technology options trades today is 9134.0 with a total volume of 27,712.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Microchip Technology's big money trades within a strike price range of $80.0 to $85.0 over the last 30 days.

Microchip Technology Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

About Microchip Technology

Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

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

Microchip Technology's Current Market Status

• With a volume of 2,313,558, the price of MCHP is down -1.3% at $84.05.
• RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
• Next earnings are expected to be released in 15 days.

What Analysts Are Saying About Microchip Technology

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $89.66666666666667.

• Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for Microchip Technology, targeting a price of $96.
• Consistent in their evaluation, an analyst from Truist Securities keeps a Buy rating on Microchip Technology with a target price of $93.
• An analyst from Piper Sandler downgraded its action to Neutral with a price target of $80.

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 Microchip Technology with Benzinga Pro for real-time alerts.