Deep-pocketed investors have adopted a bearish approach towards Cloudflare (NYSE:NET), 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 NET usually suggests something big is about to happen.
We gleaned this information from our observations today when Benzinga's options scanner highlighted 8 extraordinary options activities for Cloudflare. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 12% leaning bullish and 75% bearish. Among these notable options, 4 are puts, totaling $172,861, and 4 are calls, amounting to $265,789.
What's The Price Target?
Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $35.0 to $86.0 for Cloudflare over the recent three months.
Analyzing Volume & Open Interest
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Cloudflare's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Cloudflare's significant trades, within a strike price range of $35.0 to $86.0, over the past month.
Cloudflare Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NET | CALL | SWEEP | BEARISH | 07/12/24 | $1.5 | $1.3 | $1.5 | $86.00 | $158.0K | 4.1K | 35 |
| NET | PUT | TRADE | BEARISH | 09/20/24 | $2.87 | $2.57 | $2.77 | $75.00 | $55.4K | 707 | 0 |
| NET | CALL | SWEEP | BEARISH | 07/12/24 | $1.61 | $1.55 | $1.55 | $86.00 | $49.1K | 4.1K | 1.4K |
| NET | PUT | TRADE | BEARISH | 01/16/26 | $4.3 | $4.0 | $4.19 | $50.00 | $41.4K | 530 | 1 |
| NET | PUT | TRADE | NEUTRAL | 09/20/24 | $6.8 | $6.65 | $6.73 | $85.00 | $40.3K | 903 | 0 |
About Cloudflare
Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.
Having examined the options trading patterns of Cloudflare, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Cloudflare's Current Market Status
- With a volume of 1,009,581, the price of NET is up 2.5% at $86.64.
- RSI indicators hint that the underlying stock may be overbought.
- Next earnings are expected to be released in 27 days.
What The Experts Say On Cloudflare
In the last month, 4 experts released ratings on this stock with an average target price of $76.0.
- In a cautious move, an analyst from Guggenheim downgraded its rating to Sell, setting a price target of $50.
- In a positive move, an analyst from UBS has upgraded their rating to Neutral and adjusted the price target to $82.
- An analyst from Cantor Fitzgerald has revised its rating downward to Neutral, adjusting the price target to $80.
- An analyst from Morgan Stanley has revised its rating downward to Equal-Weight, adjusting the price target to $92.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Cloudflare options trades with real-time alerts from Benzinga Pro.