Investors with a lot of money to spend have taken a bearish stance on Cloudflare NET.
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 NET, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 8 options trades for Cloudflare.
This isn't normal.
The overall sentiment of these big-money traders is split between 12% bullish and 87%, bearish.
Out of all of the options we uncovered, 7 are puts, for a total amount of $460,844, and there was 1 call, for a total amount of $40,008.
Projected Price Targets
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $75.0 and $100.0 for Cloudflare, spanning the last three months.
Insights into Volume & Open Interest
In terms of liquidity and interest, the mean open interest for Cloudflare options trades today is 134.25 with a total volume of 2,106.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Cloudflare's big money trades within a strike price range of $75.0 to $100.0 over the last 30 days.
Cloudflare 30-Day Option Volume & Interest Snapshot
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| NET | PUT | TRADE | NEUTRAL | 03/15/24 | $75.00 | $270.0K | 330 | 661 |
| NET | PUT | TRADE | BEARISH | 05/17/24 | $75.00 | $47.8K | 192 | 66 |
| NET | CALL | SWEEP | NEUTRAL | 03/01/24 | $84.00 | $40.0K | 0 | 342 |
| NET | PUT | TRADE | NEUTRAL | 01/19/24 | $100.00 | $34.3K | 15 | 15 |
| NET | PUT | TRADE | BEARISH | 03/15/24 | $75.00 | $29.5K | 330 | 102 |
About Cloudflare
Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.
Following our analysis of the options activities associated with Cloudflare, we pivot to a closer look at the company's own performance.
Current Position of Cloudflare
- With a volume of 2,109,818, the price of NET is down -1.34% at $77.4.
- RSI indicators hint that the underlying stock may be approaching oversold.
- Next earnings are expected to be released in 22 days.
What The Experts Say On Cloudflare
In the last month, 1 experts released ratings on this stock with an average target price of $90.0.
- Maintaining their stance, an analyst from Truist Securities continues to hold a Buy rating for Cloudflare, targeting a price of $90.
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 Cloudflare with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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