Deep-pocketed investors have adopted a bearish 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 16 extraordinary options activities for ServiceNow. This level of activity is out of the ordinary.
The general mood among these heavyweight investors is divided, with 6% leaning bullish and 31% bearish. Among these notable options, 4 are puts, totaling $293,800, and 12 are calls, amounting to $482,760.
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 $700.0 to $1560.0 for ServiceNow over the last 3 months.
Volume & Open Interest Trends
In terms of liquidity and interest, the mean open interest for ServiceNow options trades today is 68.27 with a total volume of 273.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for ServiceNow's big money trades within a strike price range of $700.0 to $1560.0 over the last 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 | SWEEP | BEARISH | 12/06/24 | $8.6 | $6.4 | $7.4 | $1022.50 | $148.0K | 1 | 200 |
| NOW | CALL | TRADE | NEUTRAL | 12/20/24 | $351.4 | $339.7 | $346.32 | $710.00 | $69.2K | 83 | 2 |
| NOW | CALL | TRADE | NEUTRAL | 12/20/24 | $347.2 | $335.0 | $341.9 | $710.00 | $68.3K | 83 | 4 |
| NOW | PUT | SWEEP | BEARISH | 03/21/25 | $43.0 | $41.9 | $43.0 | $1000.00 | $64.5K | 50 | 16 |
| NOW | CALL | TRADE | NEUTRAL | 02/21/25 | $70.3 | $67.2 | $68.54 | $1060.00 | $54.8K | 88 | 9 |
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.
After a thorough review of the options trading surrounding ServiceNow, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
ServiceNow's Current Market Status
- Trading volume stands at 503,701, with NOW's price down by -2.64%, positioned at $1041.87.
- RSI indicators show the stock to be may be approaching overbought.
- Earnings announcement expected in 56 days.
Professional Analyst Ratings for ServiceNow
In the last month, 3 experts released ratings on this stock with an average target price of $1123.3333333333333.
Turn $1000 into $1270 in just 20 days?
20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * An analyst from Needham has decided to maintain their Buy rating on ServiceNow, which currently sits at a price target of $1150. * Consistent in their evaluation, an analyst from Wells Fargo keeps a Overweight rating on ServiceNow with a target price of $1150. * An analyst from Mizuho persists with their Outperform rating on ServiceNow, maintaining a target price of $1070.
Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for ServiceNow with Benzinga Pro for real-time alerts.
