Microchip Technology Unusual Options Activity

Investors with a lot of money to spend have taken a bearish stance on Microchip Technology MCHP.

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 MCHP, 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 8 uncommon options trades for Microchip Technology.

This isn't normal.

The overall sentiment of these big-money traders is split between 25% bullish and 75%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $507,397, and 3 are calls, for a total amount of $129,020.

Predicted Price Range

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $80.0 and $95.0 for Microchip Technology, spanning the last three months.

Insights into Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Microchip Technology'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 Microchip Technology's whale trades within a strike price range from $80.0 to $95.0 in the last 30 days.

Microchip Technology Call and Put Volume: 30-Day Overview

Noteworthy Options Activity:

About Microchip Technology

Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

Following our analysis of the options activities associated with Microchip Technology, we pivot to a closer look at the company's own performance.

Present Market Standing of Microchip Technology

• Trading volume stands at 2,764,871, with MCHP's price down by -1.43%, positioned at $85.33.
• RSI indicators show the stock to be is currently neutral between overbought and oversold.
• Earnings announcement expected in 7 days.

Expert Opinions on Microchip Technology

A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $107.5.

• Maintaining their stance, an analyst from Susquehanna continues to hold a Positive rating for Microchip Technology, targeting a price of $115.
• In a cautious move, an analyst from Morgan Stanley downgraded its rating to Equal-Weight, setting a price target of $100.

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