Investors with a lot of money to spend have taken a bullish stance ServiceNow NOW.
And retailers should know this.
We noticed this today when the positions 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 NOW, it often means that someone knows something is about to happen.
Today, Benzinga’s options scanner spotted 12 options trades for ServiceNow.
This is not normal.
The general sentiment of these large traders is split between 50% bullish and 50% bearish.
Of all the options we discovered, there was 1 put, for a total amount of $42,000, and 11 calls, for a total amount of $477,456.
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 $750.0 and $820.0 for ServiceNow over the last 3 months.
Insights into volume and open interest
Examining volume and open interest provides crucial equity research insights. This information is critical to assessing liquidity and interest levels for ServiceNow options at certain strike prices. Below, we present a snapshot of trends in volume and open interest for calls and puts in significant ServiceNow trades, within a strike price range of $750.0 to $820.0, in the last month.
ServiceNow options volume and open interest over the last 30 days
Significant options trades detected:
| Symbol | PUT/CALL | Type of trade | Feeling | Exp. Date | Ask | Offer | Price | Strike price | Total commercial price | Open interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NOW | CALL | TRADE | BULLISH | 06/21/24 | $48.0 | $46.1 | $48.0 | $800.00 | $67.2k | 800 | 0 |
| NOW | CALL | TRADE | BEARISH | 04/19/24 | $12.2 | $11.8 | $11.8 | $805.00 | $59.0K | 73 | 60 |
| NOW | CALL | SWEEP | BULLISH | 04/19/24 | $11.4 | $11.0 | $11.0 | $800.00 | $55.0K | 348 | 55 |
| NOW | CALL | TRADE | BULLISH | 09/20/24 | $103.0 | $100.50 | $103.0 | $750.00 | $51.5K | 35 | 0 |
| NOW | CALL | TRADE | BEARISH | 04/19/24 | $10.4 | $10.0 | $10.0 | $800.00 | $48.0K | 348 | 53 |
About ServiceNow
ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company mainly focuses on the IT function for enterprise customers. ServiceNow started with IT service management, expanded within the IT function, and more recently has driven workflow automation logic to functional areas outside of IT, notably customer service, service delivery HR and security operations. ServiceNow also offers an application development platform as a service.
After reviewing ServiceNow’s options trading models, our attention now turns directly to the company. This move allows us to delve deeper into its current market position and performance
ServiceNow’s current market position
- Currently trading on volume of 257,535, NOW’s price is up 0.62%, now at $788.32.
- RSI readings suggest the stock may be approaching overbought currently.
- The expected earnings release is in 16 days.
What the experts say about ServiceNow
3 market experts have recently issued ratings for this stock, with a consensus price target of $880.0.
- Reflecting the concerns, an analyst at Stifel downgrades the rating to Buy with a new price target of $820.
- An analyst at Keybanc revised his rating down to Overweight, adjusting the price target to $1000.
- In a cautious move, an analyst at Stifel downgraded the rating to Buy, setting a price target of $820.
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 ServiceNow options trades with real-time alerts from Benzinga Pro.