Decoding Northrop Grumman's Options Activity: What's the Big Picture?

Deep-pocketed investors have adopted a bearish approach towards Northrop Grumman NOC, 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 NOC 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 Northrop Grumman. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 25% leaning bullish and 37% bearish. Among these notable options, 6 are puts, totaling $244,235, and 2 are calls, amounting to $631,070.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $480.0 and $540.0 for Northrop Grumman, spanning the last three months.

Insights into Volume & Open Interest

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Northrop Grumman's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Northrop Grumman's substantial trades, within a strike price spectrum from $480.0 to $540.0 over the preceding 30 days.

Northrop Grumman Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

About Northrop Grumman

Northrop Grumman is a diversified defense contractor providing aeronautics, defense, and space systems. The company's aerospace segment creates the fuselage for the massive F-35 program and produces autonomous and piloted aircraft such as Global Hawk drones and the new B-21 bomber. Defense systems makes artillery and missile ammunition and guidance systems, missile defense systems, and maintains and upgrades numerous military aircraft. Mission systems creates and integrates a variety of radar, navigation, and communication systems for avionics, weapons control, and countermeasures on a range of platforms from helicopters to destroyers. Finally, space systems produces satellites, sensors, space structures, and manufactures long-range missiles and rocket motors.

Having examined the options trading patterns of Northrop Grumman, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Northrop Grumman's Current Market Status

• Trading volume stands at 245,433, with NOC's price up by 0.62%, positioned at $524.39.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 51 days.

Professional Analyst Ratings for Northrop Grumman

2 market experts have recently issued ratings for this stock, with a consensus target price of $576.0.

• Reflecting concerns, an analyst from Alembic Global lowers its rating to Neutral with a new price target of $560.
• An analyst from Morgan Stanley has decided to maintain their Overweight rating on Northrop Grumman, which currently sits at a price target of $592.

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 Northrop Grumman, Benzinga Pro gives you real-time options trades alerts.