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Looking At NextEra Energy's Recent Unusual Options Activity

Author: Benzinga Insights | June 20, 2024 01:02pm

Deep-pocketed investors have adopted a bearish approach towards NextEra Energy (NYSE:NEE), 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 NEE usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 13 extraordinary options activities for NextEra Energy. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 30% leaning bullish and 61% bearish. Among these notable options, 8 are puts, totaling $701,326, and 5 are calls, amounting to $168,904.

Expected Price Movements

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $67.5 to $80.0 for NextEra Energy during the past quarter.

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 NextEra Energy's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to NextEra Energy's substantial trades, within a strike price spectrum from $67.5 to $80.0 over the preceding 30 days.

NextEra Energy Option Volume And Open Interest Over Last 30 Days

Options Call Chart

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
NEE PUT SWEEP BULLISH 07/19/24 $1.06 $1.05 $1.05 $70.00 $206.4K 5.8K 4.1K
NEE PUT SWEEP BEARISH 01/16/26 $8.5 $7.15 $7.45 $70.00 $169.4K 161 0
NEE PUT SWEEP BEARISH 01/16/26 $7.4 $6.4 $7.4 $70.00 $166.5K 161 226
NEE CALL SWEEP BEARISH 09/20/24 $6.4 $6.25 $6.3 $67.50 $42.8K 3.4K 8
NEE PUT SWEEP BEARISH 10/18/24 $2.21 $2.06 $2.21 $67.50 $38.6K 8.0K 168

About NextEra Energy

NextEra Energy's regulated utility, Florida Power & Light, is the largest rate-regulated utility in Florida. The utility distributes power to nearly 6 million customer accounts in Florida and owns 34 gigawatts of generation. FP&L contributes roughly 70% of NextEra's consolidated operating earnings. NextEra Energy Resources, the renewable energy segment, generates and sells power throughout the United States and Canada with more than 34 GW of generation capacity, including natural gas, nuclear, wind, and solar.

Having examined the options trading patterns of NextEra Energy, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Where Is NextEra Energy Standing Right Now?

  • With a volume of 6,707,171, the price of NEE is up 1.95% at $71.81.
  • RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
  • Next earnings are expected to be released in 33 days.

Expert Opinions on NextEra Energy

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $84.2.

  • Maintaining their stance, an analyst from RBC Capital continues to hold a Outperform rating for NextEra Energy, targeting a price of $84.
  • An analyst from JP Morgan has decided to maintain their Overweight rating on NextEra Energy, which currently sits at a price target of $90.
  • Consistent in their evaluation, an analyst from Barclays keeps a Equal-Weight rating on NextEra Energy with a target price of $73.
  • Consistent in their evaluation, an analyst from BMO Capital keeps a Outperform rating on NextEra Energy with a target price of $79.
  • An analyst from Wells Fargo persists with their Overweight rating on NextEra Energy, maintaining a target price of $95.

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 NextEra Energy with Benzinga Pro for real-time alerts.

Posted In: NEE