Decoding Freshpet's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on Freshpet FRPT.

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 FRPT, 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 30 uncommon options trades for Freshpet.

This isn't normal.

The overall sentiment of these big-money traders is split between 46% bullish and 40%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $370,105, and 24 are calls, for a total amount of $3,593,450.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $50.0 to $140.0 for Freshpet over the recent three months.

Insights into Volume & Open Interest

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 Freshpet'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 Freshpet's whale trades within a strike price range from $50.0 to $140.0 in the last 30 days.

Freshpet 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

About Freshpet

Freshpet produces and sells premium fresh pet food through its company-owned refrigerators placed in grocery, mass and club, pet specialty, and natural stores. The former two store types accounted for 89% of 2023 sales, with grocery stores representing the primary driver of footprint growth. Freshpet primarily targets dogs (92% of sales), with cats and treats comprising the rest of its sales. Geographically, the company's home US market, where all its food is produced, accounts for about 96% of sales, with exports to Canada, the United Kingdom, and other European countries accounting for the remaining balance.

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

Current Position of Freshpet

• With a volume of 1,761,122, the price of FRPT is down -5.95% at $100.06.
• RSI indicators hint that the underlying stock may be oversold.
• Next earnings are expected to be released in 73 days.

Professional Analyst Ratings for Freshpet

In the last month, 4 experts released ratings on this stock with an average target price of $149.75.

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. * Maintaining their stance, an analyst from Piper Sandler continues to hold a Overweight rating for Freshpet, targeting a price of $160. * Consistent in their evaluation, an analyst from Citigroup keeps a Neutral rating on Freshpet with a target price of $142. * An analyst from Stifel persists with their Buy rating on Freshpet, maintaining a target price of $155. * An analyst from Wells Fargo has decided to maintain their Overweight rating on Freshpet, which currently sits at a price target of $142.

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 Freshpet with Benzinga Pro for real-time alerts.