Investors with a lot of money to spend have taken a bearish stance on Spotify Technology SPOT.
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 SPOT, 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 11 uncommon options trades for Spotify Technology.
This isn't normal.
The overall sentiment of these big-money traders is split between 36% bullish and 63%, bearish.
Out of all of the special options we uncovered, 4 are puts, for a total amount of $153,180, and 7 are calls, for a total amount of $1,058,860.
Expected Price Movements
Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $280.0 to $430.0 for Spotify Technology during the past quarter.
Volume & Open Interest Development
In today's trading context, the average open interest for options of Spotify Technology stands at 382.7, with a total volume reaching 1,220.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Spotify Technology, situated within the strike price corridor from $280.0 to $430.0, throughout the last 30 days.
Spotify Technology Option Activity Analysis: Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SPOT | CALL | TRADE | BEARISH | 11/15/24 | $11.45 | $11.05 | $11.1 | $400.00 | $388.5K | 264 | 353 |
| SPOT | CALL | SWEEP | BEARISH | 12/19/25 | $48.8 | $48.8 | $48.8 | $430.00 | $253.7K | 86 | 52 |
| SPOT | CALL | SWEEP | BEARISH | 12/19/25 | $49.8 | $48.8 | $48.8 | $430.00 | $146.4K | 86 | 82 |
| SPOT | CALL | TRADE | BULLISH | 10/18/24 | $2.41 | $1.59 | $2.1 | $377.50 | $107.5K | 533 | 550 |
| SPOT | CALL | TRADE | BEARISH | 01/17/25 | $99.8 | $98.0 | $98.0 | $280.00 | $98.0K | 435 | 10 |
About Spotify Technology
Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 602 million monthly active users at the end of 2023. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 86% and 14% of Spotify's 2023 total revenue, respectively.
After a thorough review of the options trading surrounding Spotify Technology, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Spotify Technology
- Currently trading with a volume of 748,814, the SPOT's price is down by -0.43%, now at $370.1.
- RSI readings suggest the stock is currently may be approaching overbought.
- Anticipated earnings release is in 26 days.
What The Experts Say On Spotify Technology
In the last month, 5 experts released ratings on this stock with an average target price of $423.6.
Unusual Options Activity Detected: Smart Money on the Move
Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * Reflecting concerns, an analyst from Cantor Fitzgerald lowers its rating to Neutral with a new price target of $340. * Maintaining their stance, an analyst from Keybanc continues to hold a Overweight rating for Spotify Technology, targeting a price of $490. * An analyst from Rosenblatt persists with their Buy rating on Spotify Technology, maintaining a target price of $438. * Consistent in their evaluation, an analyst from Pivotal Research keeps a Buy rating on Spotify Technology with a target price of $510. * In a cautious move, an analyst from Cantor Fitzgerald downgraded its rating to Neutral, setting a price target of $340.
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 Spotify Technology options trades with real-time alerts from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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