Unpacking the Latest Options Trading Trends in KLA

Investors with a lot of money to spend have taken a bullish stance on KLA KLAC.

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 KLAC, 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 10 uncommon options trades for KLA.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 30%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $142,455, and 8 are calls, for a total amount of $406,116.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $600.0 to $900.0 for KLA over the last 3 months.

Volume & Open Interest Development

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 KLA'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 KLA's whale trades within a strike price range from $600.0 to $900.0 in the last 30 days.

KLA Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

About KLA

KLA is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segment of semiconductor process control, wherein machines inspect semiconductor wafers during research and development and manufacturing for defects and verify precise measurements. In this section of the market, KLA holds a majority share. It also has a small exposure to the etch and deposition segments of the WFE market. It counts as top customers the largest chipmakers in the world, including TSMC and Samsung.

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

Current Position of KLA

• Trading volume stands at 363,703, with KLAC's price up by 3.6%, positioned at $799.83.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 27 days.

Professional Analyst Ratings for KLA

3 market experts have recently issued ratings for this stock, with a consensus target price of $805.0.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from UBS persists with their Neutral rating on KLA, maintaining a target price of $765. * An analyst from Citigroup has decided to maintain their Buy rating on KLA, which currently sits at a price target of $900. * In a cautious move, an analyst from Oppenheimer downgraded its rating to Perform, setting a price target of $750.

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