ARM Holdings's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bearish stance on ARM Holdings ARM.

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 ARM, 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 43 uncommon options trades for ARM Holdings.

This isn't normal.

The overall sentiment of these big-money traders is split between 46% bullish and 53%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $340,629, and 36 are calls, for a total amount of $2,647,624.

Predicted Price Range

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $70.0 to $200.0 for ARM Holdings over the recent three months.

Insights into Volume & Open Interest

In today's trading context, the average open interest for options of ARM Holdings stands at 2186.48, with a total volume reaching 26,597.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in ARM Holdings, situated within the strike price corridor from $70.0 to $200.0, throughout the last 30 days.

ARM Holdings Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

About ARM Holdings

Arm Holdings is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.

Where Is ARM Holdings Standing Right Now?

• With a volume of 13,229,986, the price of ARM is up 7.87% at $133.1.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 83 days.

Expert Opinions on ARM Holdings

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $102.0.

• Consistent in their evaluation, an analyst from Susquehanna keeps a Neutral rating on ARM Holdings with a target price of $85.
• An analyst from Barclays has decided to maintain their Overweight rating on ARM Holdings, which currently sits at a price target of $105.
• Maintaining their stance, an analyst from Mizuho continues to hold a Buy rating for ARM Holdings, targeting a price of $100.
• Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for ARM Holdings, targeting a price of $100.
• An analyst from Keybanc has decided to maintain their Overweight rating on ARM Holdings, which currently sits at a price target of $120.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest ARM Holdings options trades with real-time alerts from Benzinga Pro.