Decoding Synopsys's Options Activity: What's the Big Picture?

Deep-pocketed investors have adopted a bearish approach towards Synopsys SNPS, 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 SNPS usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 8 extraordinary options activities for Synopsys. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 25% leaning bullish and 62% bearish. Among these notable options, 3 are puts, totaling $90,620, and 5 are calls, amounting to $311,354.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $550.0 to $700.0 for Synopsys over the last 3 months.

Analyzing 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 Synopsys's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Synopsys's significant trades, within a strike price range of $550.0 to $700.0, over the past month.

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.

After a thorough review of the options trading surrounding Synopsys, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Current Position of Synopsys

• With a trading volume of 335,446, the price of SNPS is down by -4.39%, reaching $562.52.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 28 days from now.

Professional Analyst Ratings for Synopsys

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $679.3333333333334.

• An analyst from Piper Sandler has decided to maintain their Overweight rating on Synopsys, which currently sits at a price target of $687.
• An analyst from Keybanc persists with their Overweight rating on Synopsys, maintaining a target price of $690.
• An analyst from Baird has decided to maintain their Outperform rating on Synopsys, which currently sits at a price target of $661.

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.