A Closer Look at Synopsys's Options Market Dynamics

Investors with a lot of money to spend have taken a bearish stance on Synopsys SNPS.

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 SNPS, 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 14 uncommon options trades for Synopsys.

This isn't normal.

The overall sentiment of these big-money traders is split between 42% bullish and 57%, bearish.

Out of all of the special options we uncovered, 12 are puts, for a total amount of $516,254, and 2 are calls, for a total amount of $138,821.

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 $540.0 and $720.0 for Synopsys, spanning the last three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Synopsys'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 Synopsys's whale activity within a strike price range from $540.0 to $720.0 in the last 30 days.

Synopsys Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

About Synopsys

Synopsys is a provider of electronic design automation software, intellectual property, and software integrity products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. The firm's growing SI business allows customers to continuously manage and test the code base for security and quality. Synopsys' 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 chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.

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

Current Position of Synopsys

• Trading volume stands at 449,237, with SNPS's price down by -1.25%, positioned at $534.32.
• RSI indicators show the stock to be may be oversold.
• Earnings announcement expected in 28 days.

Professional Analyst Ratings for Synopsys

A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $646.6666666666666.

• In a cautious move, an analyst from Piper Sandler downgraded its rating to Overweight, setting a price target of $665.
• In a cautious move, an analyst from Needham downgraded its rating to Buy, setting a price target of $660.
• An analyst from Rosenblatt has revised its rating downward to Buy, adjusting the price target to $615.

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 Synopsys, Benzinga Pro gives you real-time options trades alerts.