High-rolling investors have positioned themselves bearish on United Parcel Service (NYSE:UPS), 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 UPS often signals that someone has privileged information.
Today, Benzinga's options scanner spotted 9 options trades for United Parcel Service. This is not a typical pattern.
The sentiment among these major traders is split, with 33% bullish and 44% bearish. Among all the options we identified, there was one put, amounting to $119,660, and 8 calls, totaling $330,341.
Expected Price Movements
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $120.0 to $175.0 for United Parcel Service over the last 3 months.
Volume & Open Interest Trends
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for United Parcel Service's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across United Parcel Service's significant trades, within a strike price range of $120.0 to $175.0, over the past month.
United Parcel Service 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| UPS | PUT | SWEEP | BEARISH | 08/16/24 | $12.05 | $11.65 | $11.97 | $145.00 | $119.6K | 221 | 0 |
| UPS | CALL | SWEEP | BULLISH | 10/18/24 | $3.7 | $3.65 | $3.65 | $145.00 | $94.1K | 355 | 0 |
| UPS | CALL | TRADE | NEUTRAL | 01/16/26 | $26.1 | $24.4 | $25.34 | $120.00 | $50.6K | 74 | 0 |
| UPS | CALL | TRADE | BEARISH | 10/18/24 | $7.45 | $7.4 | $7.4 | $135.00 | $37.0K | 805 | 28 |
| UPS | CALL | TRADE | BULLISH | 07/19/24 | $1.65 | $1.62 | $1.65 | $140.00 | $33.9K | 3.5K | 736 |
About United Parcel Service
As the world's largest parcel delivery company, UPS manages a massive fleet of more than 500 planes and 100,000 vehicles, along with many hundreds of sorting facilities, to deliver an average of about 22 million packages per day to residences and businesses across the globe. UPS' domestic US package operations generate around 64% of total revenue while international package makes up 20%. Air and ocean freight forwarding, truckload brokerage, and contract logistics make up the remainder. UPS is currently pursuing "strategic alternatives" for its truck brokerage unit, Coyote, which it acquired in 2015.
After a thorough review of the options trading surrounding United Parcel Service, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Where Is United Parcel Service Standing Right Now?
- With a volume of 1,934,534, the price of UPS is down -1.31% at $134.64.
- RSI indicators hint that the underlying stock may be oversold.
- Next earnings are expected to be released in 40 days.
What Analysts Are Saying About United Parcel Service
In the last month, 1 experts released ratings on this stock with an average target price of $156.0.
- An analyst from Wells Fargo has revised its rating downward to Overweight, adjusting the price target to $156.
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.