Investors with a lot of money to spend have taken a bearish position Bitfarm BITF.
And retailers should know this.
We noticed this today when the trades appeared in the publicly available options history that we track here at Benzinga.
Whether these are institutions or simply wealthy individuals, we do not know. But when something this big happens with BITF, it often means someone knows something is coming.
So how do we know what these investors just did?
Today, Benzinga’s options scanner spotted 16 unusual options trades for Bitfarm.
This is not normal.
The overall sentiment of these large traders is split between 31% bullish and 68%, bearish.
Of all the special options we discovered, 2 are puts, for a total amount of $69,765, and 14 are calls, for a total amount of $531,583.
Expected price movements
Taking into account the volume and open interest on these contracts, it appears that whales have been targeting a price range between $0.5 and $5.0 for Bitfarm over the past 3 months.
Trends in volumes and open interests
Evaluating volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Bitfarms options at specific strike prices. The upcoming data displays the fluctuation in volume and open interest for both calls and puts, related to Bitfarms’ substantial trades, within a strike price spectrum of $0.5 to $5.0 in the 30 days previous.
Bitfarm options activity analysis: last 30 days
Major options identified:
| Symbol | PUT/CALL | Type of trade | Feeling | Exp. Date | Strike price | Total commercial price | Open interest | Volume |
|---|---|---|---|---|---|---|---|---|
| BITF | CALL | TRADE | BEARISH | 04/19/24 | $2.50 | $52.0K | 6.2K | 2.5K |
| BITF | CALL | TRADE | BEARISH | 01/17/25 | $2.50 | $48.3k | 14.3K | 1.9K |
| BITF | CALL | TRADE | BEARISH | 01/16/26 | $2.50 | $43.5K | 18.1K | 1.3K |
| BITF | CALL | SWEEP | BEARISH | 01/16/26 | $2.50 | $43.2k | 18.1K | 1.6K |
| BITF | CALL | TRADE | NEUTRAL | 01/17/25 | $2.50 | $42.0K | 14.3K | 1.9K |
About Bitfarm
Bitfarms Ltd, engaged in the cryptocurrency mining industry, primarily consists of selling its computational power used for hashing calculations for cryptocurrency mining across multiple jurisdictions. Its geographic operations are currently located in Canada, the United States, Argentina and Paraguay. It owns and operates server farms made up of computers designed to validate transactions on the Bitcoin Blockchain.
Current state of the Bitfarm market
- Currently trading on a volume of 39,273,721, BITF price is down -0.87%, now at $2.29.
- RSI readings suggest that the stock is currently neutral between overbought and oversold.
- The expected earnings release is in 49 days.
What Bitfarm analysts say
Over the past month, 3 industry analysts have shared their views on this stock, offering an average price target of $4.0.
- An analyst at Cantor Fitzgerald has decided to maintain an Overweight rating on Bitfarms, which currently sits at a target price of $4.
- Reflecting the concerns, an analyst at HC Wainwright & Co. downgrades the rating to Buy with a new $4 price target.
- Reflecting the concerns, an analyst at HC Wainwright & Co. downgrades the rating to Buy with a new $4 price target.
Options trading has higher risks and potential rewards. Smart traders manage these risks by continuously educating themselves, adapting their strategies, monitoring multiple indicators and keeping an eye on market movements. Stay informed on the latest Bitfarms options trades with real-time alerts from Benzinga Pro.