Spotlight on Arista Networks: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bullish stance on Arista Networks ANET.

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 ANET, 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 16 uncommon options trades for Arista Networks.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $206,000, and 14 are calls, for a total amount of $629,493.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $220.0 and $300.0 for Arista Networks, spanning the last three months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Arista Networks's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Arista Networks's whale trades within a strike price range from $220.0 to $300.0 in the last 30 days.

Arista Networks Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

About Arista Networks

Arista Networks is a networking equipment provider that primarily sells Ethernet switches and software to data centers. Its marquee product is its extensible operating system, or EOS, that runs a single image across every single one of its devices. The firm operates as one reportable segment. It has steadily gained market share since its founding in 2004, with a focus on high-speed applications. Arista counts Microsoft and Meta Platforms as its largest customers and derives roughly three quarters of its sales from North America.

Having examined the options trading patterns of Arista Networks, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of Arista Networks

• Trading volume stands at 463,571, with ANET's price up by 0.93%, positioned at $275.64.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 7 days.

What The Experts Say On Arista Networks

3 market experts have recently issued ratings for this stock, with a consensus target price of $297.6666666666667.

• An analyst from Melius Research upgraded its action to Buy with a price target of $300.
• An analyst from Keybanc has decided to maintain their Overweight rating on Arista Networks, which currently sits at a price target of $287.
• Consistent in their evaluation, an analyst from Keybanc keeps a Overweight rating on Arista Networks with a target price of $306.

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 Arista Networks with Benzinga Pro for real-time alerts.