Someone with a lot of money to spend had a weak stance Service Today NOW.
And retail traders should know.
We noticed this today when a big position emerged in the history of publicly available options that we monitor here at Benzinga.
Whether it’s an institution or just a wealthy individual, we don’t know. But when something this big happens NOW, it often means someone knows something is going to happen.
So how do we know what this whale did?
Today, Benzinga’s options scanner detects 10 unusual options trades for ServiceNow.
This is not normal.
The general sentiment of these big money traders is divided between 20% bullish and 80%, bearish.
Of all the special options we discovered, 3 were placed, for a total amount of $ 88,897, and 7 were calls, for a total amount of $ 546,290.
What is the Target Price?
Considering the Volume and Open Interest in these contracts, it appears that Whales has been targeting a price range from $ 400.0 to $ 560.0 for ServiceNow over the past 3 months.
Volume and Open Interest Development
Looking at volume and open interest is an insightful way to make due diligence on a stock.
This data can help you track liquidity and interest for ServiceNow options for a particular strike price.
Below, we note the evolution of volume and open interest of calls and placements, respectively, for all ServiceNow whale activity within the strike price range from $ 400.0 to $ 560.0 over the past 30 days.
ServiceNow Option Volume And Open Interest Over Last 30 Days
Largest Options Seen:
| Symbol | PUT/CALL | Type of Trade | Sentiment | Exp. Date | Strike Price | Total Trading Price | Open Interest | Quantity |
|---|---|---|---|---|---|---|---|---|
| NOW | CALL | WALIS | NEUTRAL | 04/29/22 | $ 460.00 | $ 199.4K | 217 | 93 |
| NOW | CALL | WALIS | NEUTRAL | 04/29/22 | $ 460.00 | $ 88.4K | 217 | 37 |
| NOW | CALL | WALIS | NEUTRAL | 05/06/22 | $ 500.00 | $ 87.3K | 26 | 114 |
| NOW | CALL | TRADE | NEUTRAL | 05/20/22 | $ 440.00 | $ 60.6K | 10 | 8 |
| NOW | CALL | TRADE | BULLISH | 05/20/22 | $ 550.00 | $ 42.5K | 1.0K | 103 |
Where Does ServiceNow Stand Now?
- At a volume of 1,929,995, the NOW price rose 5.75% to $ 493.09.
- RSI indicators indicate that the underlying stock is currently neutral between overbought and oversold.
- Subsequent earnings are expected to be released within 90 days.
What Service Experts Say Today:
- Keybanc decided to keep their Overweight rating on ServiceNow, which is currently at a target price of $ 613.
- RBC Capital decided to maintain their Outperform rating on ServiceNow, which is currently at a target price of $ 660.
- Credit Suisse has decided to maintain their Outperform rating on ServiceNow, which is currently at a price target of $ 700.
- RBC Capital decided to maintain their Outperform rating on ServiceNow, which is currently at a target price of $ 670.
- Citigroup decided to keep their ServiceNow Purchase rating, which is currently at a price target of $ 623.
Options are more risky assets compared to just stock trading, 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 closely the markets.
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