Spotlight on Spotify Technology: Analyzing the Surge in Options Activity

Author: Benzinga Insights | July 15, 2024 02:45pm

Whales with a lot of money to spend have taken a noticeably bullish stance on Spotify Technology.

Looking at options history for Spotify Technology (NYSE:SPOT) we detected 9 trades.

If we consider the specifics of each trade, it is accurate to state that 44% of the investors opened trades with bullish expectations and 33% with bearish.

From the overall spotted trades, 6 are puts, for a total amount of $254,107 and 3, calls, for a total amount of $154,368.

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $210.0 to $350.0 for Spotify Technology over the last 3 months.

Insights into 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 Spotify Technology'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 Spotify Technology's whale activity within a strike price range from $210.0 to $350.0 in the last 30 days.

Spotify Technology Option Activity Analysis: 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
SPOT	CALL	SWEEP	BEARISH	12/20/24	$44.15	$44.1	$44.1	$290.00	$97.0K	219	16
SPOT	PUT	TRADE	BULLISH	03/21/25	$24.15	$22.85	$23.15	$270.00	$60.1K	54	16
SPOT	PUT	SWEEP	NEUTRAL	08/16/24	$22.65	$22.35	$22.5	$310.00	$47.2K	808	162
SPOT	PUT	SWEEP	NEUTRAL	07/19/24	$2.62	$2.38	$2.5	$295.00	$47.2K	425	102
SPOT	PUT	TRADE	BULLISH	03/21/25	$23.15	$23.1	$23.1	$270.00	$34.6K	54	1

About Spotify Technology

Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 602 million monthly active users at the end of 2023. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 86% and 14% of Spotify's 2023 total revenue, respectively.

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

Spotify Technology's Current Market Status

• With a trading volume of 578,985, the price of SPOT is up by 0.26%, reaching $303.06.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 8 days from now.

What Analysts Are Saying About Spotify Technology

In the last month, 5 experts released ratings on this stock with an average target price of $361.0.

• An analyst from Redburn Atlantic has revised its rating downward to Sell, adjusting the price target to $230.
• An analyst from UBS persists with their Buy rating on Spotify Technology, maintaining a target price of $400.
• Reflecting concerns, an analyst from Jefferies lowers its rating to Buy with a new price target of $385.
• An analyst from Keybanc has decided to maintain their Overweight rating on Spotify Technology, which currently sits at a price target of $410.
• Maintaining their stance, an analyst from B of A Securities continues to hold a Buy rating for Spotify Technology, targeting a price of $380.

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 Spotify Technology with Benzinga Pro for real-time alerts.

Posted In: SPOT