Decoding ARM Holdings's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bearish stance on ARM Holdings ARM.

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 ARM, 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 28 uncommon options trades for ARM Holdings.

This isn't normal.

The overall sentiment of these big-money traders is split between 32% bullish and 67%, bearish.

Out of all of the special options we uncovered, 7 are puts, for a total amount of $549,230, and 21 are calls, for a total amount of $12,788,070.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $115.0 to $200.0 for ARM Holdings over the recent three months.

Insights into Volume & Open Interest

In terms of liquidity and interest, the mean open interest for ARM Holdings options trades today is 2057.64 with a total volume of 17,652.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for ARM Holdings's big money trades within a strike price range of $115.0 to $200.0 over the last 30 days.

ARM Holdings 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

About ARM Holdings

Arm Holdings is the intellectual property owner and developer of the ARM architecture, which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allow them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.

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

Present Market Standing of ARM Holdings

• With a trading volume of 1,128,375, the price of ARM is down by -1.74%, reaching $121.13.
• Current RSI values indicate that the stock is may be overbought.
• Next earnings report is scheduled for 2 days from now.

What The Experts Say On ARM Holdings

In the last month, 4 experts released ratings on this stock with an average target price of $146.0.

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. * Consistent in their evaluation, an analyst from UBS keeps a Buy rating on ARM Holdings with a target price of $165. * Consistent in their evaluation, an analyst from B of A Securities keeps a Buy rating on ARM Holdings with a target price of $144. * An analyst from Wells Fargo has decided to maintain their Overweight rating on ARM Holdings, which currently sits at a price target of $150. * Maintaining their stance, an analyst from Barclays continues to hold a Overweight rating for ARM Holdings, targeting a price of $125.

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