Investors with a lot of money to spend have taken a bearish stance on ServiceNow NOW.
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 NOW, 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 16 uncommon options trades for ServiceNow.
This isn't normal.
The overall sentiment of these big-money traders is split between 31% bullish and 56%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $170,970, and 14 are calls, for a total amount of $2,024,931.
Predicted Price Range
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $730.0 to $860.0 for ServiceNow over the recent three months.
Analyzing 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 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 trades within a strike price range from $730.0 to $860.0 in the last 30 days.
ServiceNow Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NOW | CALL | TRADE | BEARISH | 11/15/24 | $135.1 | $129.8 | $129.8 | $730.00 | $428.3K | 73 | 36 |
| NOW | CALL | TRADE | BEARISH | 11/15/24 | $102.4 | $101.6 | $101.6 | $770.00 | $426.7K | 119 | 42 |
| NOW | CALL | TRADE | BEARISH | 11/15/24 | $109.5 | $108.2 | $108.2 | $760.00 | $357.0K | 82 | 33 |
| NOW | CALL | TRADE | BEARISH | 11/15/24 | $101.9 | $100.5 | $100.5 | $770.00 | $271.3K | 119 | 69 |
| NOW | CALL | SWEEP | BULLISH | 08/23/24 | $21.1 | $14.7 | $21.2 | $822.50 | $212.0K | 2 | 0 |
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.
After a thorough review of the options trading surrounding ServiceNow, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of ServiceNow
- With a volume of 249,750, the price of NOW is up 1.23% at $829.13.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 69 days.
What The Experts Say On ServiceNow
5 market experts have recently issued ratings for this stock, with a consensus target price of $876.2.
- An analyst from Stifel persists with their Buy rating on ServiceNow, maintaining a target price of $900.
- An analyst from JMP Securities has decided to maintain their Market Outperform rating on ServiceNow, which currently sits at a price target of $850.
- Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on ServiceNow with a target price of $911.
- An analyst from JP Morgan has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $820.
- An analyst from TD Cowen has decided to maintain their Buy rating on ServiceNow, which currently sits at a price target of $900.
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 ServiceNow with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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