Investors with a lot of money to spend have taken a bearish stance on Trip.com Group TCOM.
And retail traders should know.
We noticed this today when the positions 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 TCOM, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 9 options trades for Trip.com Group.
This isn't normal.
The overall sentiment of these big-money traders is split between 33% bullish and 66%, bearish.
Out of all of the options we uncovered, there was 1 put, for a total amount of $85,500, and 8, calls, for a total amount of $765,877.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $55.0 to $70.0 for Trip.com Group over the recent three months.
Analyzing Volume & Open Interest
In today's trading context, the average open interest for options of Trip.com Group stands at 2123.0, with a total volume reaching 7,365.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Trip.com Group, situated within the strike price corridor from $55.0 to $70.0, throughout the last 30 days.
Trip.com Group Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| TCOM | CALL | SWEEP | BEARISH | 12/20/24 | $7.4 | $7.2 | $7.2 | $55.00 | $234.0K | 4.2K | 396 |
| TCOM | CALL | TRADE | BEARISH | 12/20/24 | $8.3 | $7.8 | $7.9 | $55.00 | $149.3K | 4.2K | 1.6K |
| TCOM | CALL | TRADE | BEARISH | 12/20/24 | $8.3 | $8.0 | $8.1 | $55.00 | $93.9K | 4.2K | 1.7K |
| TCOM | PUT | SWEEP | BULLISH | 12/20/24 | $11.5 | $11.4 | $11.4 | $70.00 | $85.5K | 0 | 222 |
| TCOM | CALL | TRADE | BEARISH | 12/20/24 | $8.3 | $7.8 | $7.9 | $55.00 | $79.0K | 4.2K | 1.4K |
About Trip.com Group
Trip.com is the largest online travel agent in China and is positioned to benefit from the country's rising demand for higher-margin outbound travel as passport penetration is only 12% in China. The company generated about 78% of sales from accommodation reservations and transportation ticketing in 2020. The rest of revenue comes from package tours and corporate travel. Before the pandemic in 2019, the company generated 25% of revenue from international business, which is important to its margin expansion. Most of sales come from its online platform, but the company also maintains offline call centers. The competes in a crowded OTA industry in China, including Meituan, Alibaba-backed Fliggy, Tongcheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.
Following our analysis of the options activities associated with Trip.com Group, we pivot to a closer look at the company's own performance.
Current Position of Trip.com Group
- With a volume of 4,556,414, the price of TCOM is up 6.1% at $60.14.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 52 days.
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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 Trip.com Group with Benzinga Pro for real-time alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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