Deep-pocketed investors have adopted a bullish approach towards ServiceNow (NYSE:NOW), and it's something market players shouldn't ignore. Our tracking of public options records at Benzinga unveiled this significant move today. The identity of these investors remains unknown, but such a substantial move in NOW usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 23 extraordinary options activities for ServiceNow. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 39% leaning bullish and 34% bearish. Among these notable options, 8 are puts, totaling $618,418, and 15 are calls, amounting to $745,736.
Expected Price Movements
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $550.0 and $1180.0 for ServiceNow, spanning the last three months.
Volume & Open Interest Development
Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in ServiceNow's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to ServiceNow's substantial trades, within a strike price spectrum from $550.0 to $1180.0 over the preceding 30 days.
ServiceNow Option Volume And Open Interest Over Last 30 Days
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NOW | PUT | TRADE | BEARISH | 01/17/25 | $19.7 | $18.5 | $19.5 | $650.00 | $214.5K | 992 | 0 |
| NOW | PUT | TRADE | BEARISH | 01/17/25 | $400.9 | $385.9 | $394.9 | $1180.00 | $118.4K | 0 | 0 |
| NOW | CALL | TRADE | BEARISH | 01/16/26 | $43.4 | $43.2 | $43.2 | $1180.00 | $108.0K | 94 | 92 |
| NOW | PUT | TRADE | NEUTRAL | 01/17/25 | $402.5 | $387.5 | $394.24 | $1180.00 | $78.8K | 0 | 3 |
| NOW | PUT | SWEEP | BEARISH | 07/05/24 | $38.5 | $31.1 | $36.0 | $820.00 | $75.6K | 27 | 20 |
About ServiceNow
ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management, expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service.
Having examined the options trading patterns of ServiceNow, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Current Position of ServiceNow
- Trading volume stands at 401,544, with NOW's price up by 0.59%, positioned at $793.63.
- RSI indicators show the stock to be may be overbought.
- Earnings announcement expected in 22 days.
What The Experts Say On ServiceNow
3 market experts have recently issued ratings for this stock, with a consensus target price of $880.0.
- Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on ServiceNow with a target price of $820.
- Consistent in their evaluation, an analyst from Keybanc keeps a Overweight rating on ServiceNow with a target price of $920.
- Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $900.
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.