Smart Money Is Betting Big In MCHP Options

Investors with a lot of money to spend have taken a bearish 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 these are institutions or just wealthy individuals, we don't know. But when something this big happens with MCHP, 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 11 uncommon options trades for Microchip Technology.

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, 6 are puts, for a total amount of $295,239, and 5 are calls, for a total amount of $322,252.

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 $72.5 to $110.0 for Microchip Technology over the last 3 months.

Volume & Open Interest Trends

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Microchip Technology's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Microchip Technology's substantial trades, within a strike price spectrum from $72.5 to $110.0 over the preceding 30 days.

Microchip Technology Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

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.

In light of the recent options history for Microchip Technology, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of Microchip Technology

• Trading volume stands at 2,450,176, with MCHP's price up by 0.32%, positioned at $85.45.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 0 days.

Expert Opinions on Microchip Technology

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $94.8.

• Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for Microchip Technology, targeting a price of $96.
• An analyst from Piper Sandler downgraded its action to Neutral with a price target of $80.
• Reflecting concerns, an analyst from Rosenblatt lowers its rating to Buy with a new price target of $100.
• An analyst from Truist Securities has decided to maintain their Buy rating on Microchip Technology, which currently sits at a price target of $93.
• In a positive move, an analyst from Wolfe Research has upgraded their rating to Outperform and adjusted the price target to $105.

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.