A man 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 29 unusual option trades for ServiceNow.
This is not normal.
The overall sentiment of big-money traders was split between 37% bullish and 62%, bearish.
Of all the special options we discovered, 13 were puts, for a total value of $886,570, and 16 were calls, for a total value of $1,029,420.
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 $400.0 to $750.0 for ServiceNow over the past 3 months.
Volume and Open Interest Development
In terms of liquidity and interest, the mean open interest for ServiceNow options is currently trading at 267.1 with a total volume of 3,454.00.
In the following chart, we can track the volume and open interest development of call and put options for large ServiceNow currency trades within the strike price range of $400.0 to $750.0 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
PUT
BROOM
BEARISH
11/18/22
$470.00
$287.1K
56
66
NOW
CALL
BROOM
BEARISH
09/16/22
$510.00
$150.0K
616
80
NOW
CALL
TRADE
BULLISH
01/19/24
$500.00
$119.7K
125
59
NOW
CALL
TRADE
BEARISH
01/19/24
$490.00
$92.8K
7
15
NOW
CALL
BROOM
NEUTRAL
08/05/22
$445.00
$90.9K
133
51
Where Does ServiceNow Stand Today?
- On volume of 2,880,380, NOW’s price rose 4.8% to $494.07.
- RSI indicators indicate that the underlying stock may be approaching overbought.
- The next earnings are expected to be released in 83 days.
What Experts Are Saying About Today’s Service:
- JMP Securities decided to maintain their Market Outperform rating on ServiceNow, which currently has a price target of $553.
- Morgan Stanley decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $556.
- Mizuho decided to maintain their Buy rating on ServiceNow, which currently has a price target of $500.
- Truist Securities decided to maintain their Buy rating on ServiceNow, currently with a price target of $550.
- Deutsche Bank decided to maintain its Buy rating on ServiceNow, which currently has a price target of $625.
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.