High-rolling investors have positioned themselves bullish on ARM Holdings (NASDAQ:ARM), and it's important for retail traders to take note.\This activity came to our attention today through Benzinga's tracking of publicly available options data. The identities of these investors are uncertain, but such a significant move in ARM often signals that someone has privileged information.
Today, Benzinga's options scanner spotted 16 options trades for ARM Holdings. This is not a typical pattern.
The sentiment among these major traders is split, with 50% bullish and 43% bearish. Among all the options we identified, there was one put, amounting to $189,000, and 15 calls, totaling $708,734.
Predicted Price Range
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $110.0 and $160.0 for ARM Holdings, spanning the last three months.
Analyzing Volume & Open Interest
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for ARM Holdings's options for a given strike price.
Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of ARM Holdings's whale activity within a strike price range from $110.0 to $160.0 in the last 30 days.
ARM Holdings Option Volume And Open Interest Over Last 30 Days
Largest Options Trades Observed:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ARM | PUT | TRADE | BEARISH | 12/20/24 | $18.9 | $18.65 | $18.9 | $140.00 | $188.9K | 1.8K | 101 |
| ARM | CALL | TRADE | BEARISH | 10/04/24 | $33.1 | $29.6 | $30.2 | $110.00 | $87.5K | 27 | 1 |
| ARM | CALL | TRADE | BULLISH | 10/18/24 | $27.9 | $27.8 | $27.9 | $115.00 | $83.7K | 458 | 30 |
| ARM | CALL | TRADE | BULLISH | 10/18/24 | $15.6 | $14.75 | $15.55 | $135.00 | $62.2K | 2.4K | 41 |
| ARM | CALL | TRADE | BULLISH | 11/15/24 | $11.8 | $11.7 | $11.8 | $155.00 | $59.0K | 1.3K | 52 |
About ARM Holdings
Arm Holdings is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Off-the-shelf and architectural customers pay a royalty fee per chip shipped.
After a thorough review of the options trading surrounding ARM Holdings, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
ARM Holdings's Current Market Status
- With a trading volume of 1,920,977, the price of ARM is up by 1.6%, reaching $140.61.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 59 days from now.
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.