Decoding Cadence Design Sys's Options Activity: What's the Big Picture?

High-rolling investors have positioned themselves bullish on Cadence Design Sys CDNS, and it's important for retail traders to take note. \This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in CDNS often signals that someone has privileged information.

Today, Benzinga's options scanner spotted 14 options trades for Cadence Design Sys. This is not a typical pattern.

The sentiment among these major traders is split, with 50% bullish and 50% bearish. Among all the options we identified, there was one put, amounting to $50,250, and 13 calls, totaling $698,154.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $250.0 and $410.0 for Cadence Design Sys, spanning the last three months.

Insights into Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Cadence Design Sys's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Cadence Design Sys's significant trades, within a strike price range of $250.0 to $410.0, over the past month.

Cadence Design Sys 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

About Cadence Design Sys

Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house semiconductor design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.

Where Is Cadence Design Sys Standing Right Now?

• With a volume of 811,421, the price of CDNS is up 4.93% at $305.09.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 60 days.

Professional Analyst Ratings for Cadence Design Sys

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $319.4.

• An analyst from Rosenblatt has revised its rating downward to Neutral, adjusting the price target to $280.
• An analyst from Wells Fargo has decided to maintain their Overweight rating on Cadence Design Sys, which currently sits at a price target of $330.
• Showing optimism, an analyst from Morgan Stanley upgrades its rating to Overweight with a revised price target of $350.
• Maintaining their stance, an analyst from Keybanc continues to hold a Overweight rating for Cadence Design Sys, targeting a price of $335.
• An analyst from Baird has decided to maintain their Outperform rating on Cadence Design Sys, which currently sits at a price target of $302.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for Cadence Design Sys, Benzinga Pro gives you real-time options trades alerts.