A person 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 large position appeared in the history of publicly available options that we track here at Benzinga.
Whether it’s an institution or just a rich individual, we don’t know. But when something this big happens in the NOW, it often means that someone knew something was going to happen.
So how do we know what this whale did?
Today, Benzinga’s options scanner found 34 unusual options trades for ServiceNow.
This is not normal.
The overall sentiment of these big money traders was split between 47% bullish and 52%, bearish.
Of all the special options we discovered, 17 were puts, for a total value of $706,443, and 17 were calls, for a total value of $1,238,894.
What is a Price Target?
Considering the Volume and Open Interest in these contracts, it appears that the whales are targeting a price range from $175.0 to $415.0 for ServiceNow over the past 3 months.
Volume and Open Interest Development
Looking at volume and open interest is an insightful way to perform due diligence on a stock.
This data can help you track liquidity and interest for ServiceNow options for a given strike price.
Below, we can observe the evolution of volume and open interest of calls and puts, respectively, for all ServiceNow whale activity within the strike price range from $175.0 to $415.0 over the past 30 days.
ServiceNow Option Volume And Open Interest Over The Last 30 Days
Largest Options Seen:
| Symbol | PUT/CALL | Type of Trade | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Quantity |
|---|---|---|---|---|---|---|---|---|
| NOW | CALL | BROOM | BEARISH | 11/18/22 | $300.00 | $143.8K | 28 | 19 |
| NOW | CALL | BROOM | BEARISH | 01/19/24 | $370.00 | $95.4K | 14 | 57 |
| NOW | CALL | BROOM | BULLISH | 01/19/24 | $390.00 | $87.6K | 33 | 29 |
| NOW | CALL | TRADE | BEARISH | 01/19/24 | $390.00 | $87.1K | 33 | 17 |
| NOW | PUT | BROOM | BEARISH | 11/04/22 | $415.00 | $83.8K | 167 | 24 |
| Symbol | PUT/CALL | Type of Trade | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Quantity |
|---|---|---|---|---|---|---|---|---|
| NOW | CALL | BROOM | BEARISH | 11/18/22 | $300.00 | $143.8K | 28 | 19 |
| NOW | CALL | BROOM | BEARISH | 01/19/24 | $370.00 | $95.4K | 14 | 57 |
| NOW | CALL | BROOM | BULLISH | 01/19/24 | $390.00 | $87.6K | 33 | 29 |
| NOW | CALL | TRADE | BEARISH | 01/19/24 | $390.00 | $87.1K | 33 | 17 |
| NOW | PUT | BROOM | BEARISH | 11/04/22 | $415.00 | $83.8K | 167 | 24 |
Where Does ServiceNow Stand Today?
- With a volume of 1,239,259, the price of NOW is down -7.17% to $357.92.
- RSI indicators indicate that the underlying stock may be approaching oversold.
- The next earnings are expected to be released within 82 days.
What Experts Are Saying About Today’s Service:
- Morgan Stanley decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $520.
- BMO Capital decided to maintain their Outperform rating on ServiceNow, which currently has a price target of $430.
- Mizuho decided to maintain their Buy rating on ServiceNow, which currently has a price target of $500.
- Mizuho decided to maintain their Buy rating on ServiceNow, currently with a price target of $480.
- Barclays decided to maintain their Overweight rating on ServiceNow, which currently has a price target of $501.
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 trading options for ServiceNow, Benzinga Pro gives you real-time trading options alerts.