Behind the Scenes of ServiceNow's Latest Options Trends

Author: Benzinga Insights | July 12, 2024 03:31pm

Financial giants have made a conspicuous bearish move on ServiceNow. Our analysis of options history for ServiceNow (NYSE:NOW) revealed 20 unusual trades.

Delving into the details, we found 40% of traders were bullish, while 45% showed bearish tendencies. Out of all the trades we spotted, 5 were puts, with a value of $993,171, and 15 were calls, valued at $1,080,968.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $670.0 to $860.0 for ServiceNow over the recent three months.

Volume & Open Interest Trends

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 ServiceNow'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 ServiceNow's whale activity within a strike price range from $670.0 to $860.0 in the last 30 days.

ServiceNow 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
NOW	PUT	TRADE	BULLISH	01/16/26	$162.5	$158.0	$159.5	$860.00	$797.5K	4	0
NOW	CALL	SWEEP	BULLISH	07/19/24	$61.6	$55.7	$59.32	$700.00	$178.3K	188	3
NOW	CALL	TRADE	NEUTRAL	01/17/25	$62.9	$60.2	$61.79	$800.00	$123.5K	414	8
NOW	CALL	TRADE	BULLISH	03/21/25	$106.0	$105.0	$106.0	$740.00	$106.0K	103	1
NOW	CALL	SWEEP	BULLISH	07/19/24	$25.1	$23.9	$25.03	$740.00	$86.8K	392	19

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.

In light of the recent options history for ServiceNow, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of ServiceNow

• Currently trading with a volume of 482,548, the NOW's price is up by 1.7%, now at $761.9.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 12 days.

What Analysts Are Saying About ServiceNow

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $836.0.

• Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $900.
• In a cautious move, an analyst from Guggenheim downgraded its rating to Sell, setting a price target of $640.
• An analyst from Keybanc persists with their Overweight rating on ServiceNow, maintaining a target price of $920.
• An analyst from Stifel persists with their Buy rating on ServiceNow, maintaining a target price of $820.
• An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $900.

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.

Posted In: NOW