Investors with a lot of money to spend have taken a bearish stance on Affirm Holdings (NASDAQ:AFRM).
And retail traders should know.
We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.
Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with AFRM, it often means somebody knows something is about to happen.
So how do we know what these investors just did?
Today, Benzinga's options scanner spotted 16 uncommon options trades for Affirm Holdings.
This isn't normal.
The overall sentiment of these big-money traders is split between 18% bullish and 81%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $316,004, and 9 are calls, for a total amount of $357,634.
What's The Price Target?
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $32.0 and $50.0 for Affirm Holdings, spanning the last three months.
Volume & Open Interest Development
In today's trading context, the average open interest for options of Affirm Holdings stands at 928.77, with a total volume reaching 3,331.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Affirm Holdings, situated within the strike price corridor from $32.0 to $50.0, throughout the last 30 days.
Affirm Holdings Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| AFRM | CALL | SWEEP | NEUTRAL | 04/05/24 | $37.50 | $96.0K | 20 | 570 |
| AFRM | PUT | TRADE | NEUTRAL | 03/22/24 | $39.00 | $74.9K | 2.5K | 717 |
| AFRM | PUT | TRADE | BEARISH | 03/22/24 | $39.00 | $72.8K | 2.5K | 992 |
| AFRM | PUT | SWEEP | BEARISH | 04/19/24 | $40.00 | $41.6K | 1.8K | 80 |
| AFRM | PUT | SWEEP | BEARISH | 01/17/25 | $40.00 | $40.9K | 1.3K | 33 |
About Affirm Holdings
Affirm Holdings Inc offers a platform for digital and mobile-first commerce. It comprises a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. The firm generates its revenue from merchant networks, and through virtual card networks among others. Geographically, it generates a majority share of its revenue from the United States.
Following our analysis of the options activities associated with Affirm Holdings, we pivot to a closer look at the company's own performance.
Affirm Holdings's Current Market Status
- Trading volume stands at 3,212,632, with AFRM's price down by -1.36%, positioned at $37.0.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 46 days.
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.