Spotlight on ARM Holdings: Analyzing the Surge in Options Activity

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 56 uncommon options trades for ARM Holdings.

This isn't normal.

The overall sentiment of these big-money traders is split between 41% bullish and 44%, bearish.

Out of all of the special options we uncovered, 24 are puts, for a total amount of $1,552,567, and 32 are calls, for a total amount of $1,823,494.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $75.0 to $210.0 for ARM Holdings during the past quarter.

Volume & Open Interest Trends

In terms of liquidity and interest, the mean open interest for ARM Holdings options trades today is 1445.93 with a total volume of 24,192.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for ARM Holdings's big money trades within a strike price range of $75.0 to $210.0 over the last 30 days.

ARM Holdings 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

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. Off-the-shelf and architectural customers pay a royalty fee per chip shipped.

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

Current Position of ARM Holdings

• With a volume of 5,886,746, the price of ARM is down -5.1% at $152.13.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 52 days.

Expert Opinions on ARM Holdings

Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $161.5.

• An analyst from Goldman Sachs persists with their Buy rating on ARM Holdings, maintaining a target price of $143.
• Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on ARM Holdings with a target price of $180.

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 ARM Holdings with Benzinga Pro for real-time alerts.