Deep-pocketed investors have adopted a bearish approach towards ServiceNow NOW, and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in NOW usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 17 extraordinary options activities for ServiceNow. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 17% leaning bullish and 41% bearish. Among these notable options, 3 are puts, totaling $162,745, and 14 are calls, amounting to $521,781.
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 $600.0 and $1160.0 for ServiceNow, spanning the last three months.
Analyzing 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 ServiceNow'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 ServiceNow's whale activity within a strike price range from $600.0 to $1160.0 in the last 30 days.
ServiceNow Option Activity Analysis: Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NOW | PUT | TRADE | BEARISH | 08/16/24 | $31.0 | $29.8 | $31.0 | $770.00 | $93.0K | 165 | 31 |
| NOW | CALL | TRADE | NEUTRAL | 07/26/24 | $26.2 | $24.5 | $25.4 | $775.00 | $55.8K | 65 | 150 |
| NOW | CALL | TRADE | NEUTRAL | 06/20/25 | $234.8 | $218.3 | $226.72 | $600.00 | $45.3K | 42 | 2 |
| NOW | CALL | TRADE | NEUTRAL | 01/17/25 | $118.1 | $107.5 | $111.8 | $720.00 | $44.7K | 192 | 4 |
| NOW | CALL | TRADE | BEARISH | 07/26/24 | $30.0 | $28.6 | $29.05 | $765.00 | $43.5K | 105 | 29 |
About ServiceNow
ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management, expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service.
Present Market Standing of ServiceNow
- With a volume of 156,289, the price of NOW is up 2.19% at $773.05.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 1 days.
Expert Opinions on ServiceNow
Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $823.0.
- In a cautious move, an analyst from Needham downgraded its rating to Buy, setting a price target of $900.
- Reflecting concerns, an analyst from Guggenheim lowers its rating to Sell with a new price target of $640.
- Maintaining their stance, an analyst from Keybanc continues to hold a Overweight rating for ServiceNow, targeting a price of $920.
- Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for ServiceNow, targeting a price of $820.
- Maintaining their stance, an analyst from Canaccord Genuity continues to hold a Buy rating for ServiceNow, targeting a price of $835.
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 ServiceNow options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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