ARM Holdings's Options: A Look at What the Big Money is Thinking

Investors with a lot of money to spend have taken a bullish 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 22 uncommon options trades for ARM Holdings.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 40%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $71,007, and 20 are calls, for a total amount of $1,654,693.

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 $60.0 to $270.0 for ARM Holdings during the past quarter.

Analyzing Volume & Open Interest

In terms of liquidity and interest, the mean open interest for ARM Holdings options trades today is 1565.26 with a total volume of 2,059.00.

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 $60.0 to $270.0 over the last 30 days.

ARM Holdings Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

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.

In light of the recent options history for ARM Holdings, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Current Position of ARM Holdings

• With a volume of 2,498,047, the price of ARM is down -1.28% at $130.61.
• RSI indicators hint that the underlying stock may be approaching oversold.
• Next earnings are expected to be released in 87 days.

What The Experts Say On ARM Holdings

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $149.6.

• Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for ARM Holdings, targeting a price of $125.
• Consistent in their evaluation, an analyst from Citigroup keeps a Buy rating on ARM Holdings with a target price of $170.
• An analyst from Loop Capital has decided to maintain their Buy rating on ARM Holdings, which currently sits at a price target of $130.
• An analyst from Evercore ISI Group persists with their Outperform rating on ARM Holdings, maintaining a target price of $173.
• An analyst from TD Cowen persists with their Buy rating on ARM Holdings, maintaining a target price of $150.

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 ARM Holdings options trades with real-time alerts from Benzinga Pro.