Decoding Lam Research's Options Activity: What's the Big Picture?

Author: Benzinga Insights | August 06, 2024 10:45am

Deep-pocketed investors have adopted a bearish approach towards Lam Research (NASDAQ:LRCX), 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 LRCX usually suggests something big is about to happen.

We gleaned this information from our observations today when Benzinga's options scanner highlighted 22 extraordinary options activities for Lam Research. This level of activity is out of the ordinary.

The general mood among these heavyweight investors is divided, with 31% leaning bullish and 45% bearish. Among these notable options, 8 are puts, totaling $408,260, and 14 are calls, amounting to $912,514.

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 $720.0 to $1060.0 for Lam Research during the past quarter.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Lam Research options trades today is 99.8 with a total volume of 1,243.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Lam Research's big money trades within a strike price range of $720.0 to $1060.0 over the last 30 days.

Lam Research Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
LRCX	CALL	SWEEP	NEUTRAL	08/09/24	$39.7	$34.35	$37.03	$750.00	$185.1K	159	51
LRCX	CALL	SWEEP	NEUTRAL	08/09/24	$39.25	$33.6	$36.43	$750.00	$182.1K	159	101
LRCX	CALL	TRADE	BULLISH	03/21/25	$85.3	$82.5	$85.3	$860.00	$85.3K	9	0
LRCX	CALL	TRADE	BEARISH	12/20/24	$48.3	$45.95	$46.55	$905.00	$79.1K	8	37
LRCX	CALL	TRADE	NEUTRAL	03/21/25	$96.4	$90.95	$94.0	$840.00	$75.2K	1	19

About Lam Research

Lam Research is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segments of deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear cut second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.

Present Market Standing of Lam Research

• With a volume of 301,463, the price of LRCX is up 0.47% at $773.98.
• RSI indicators hint that the underlying stock may be oversold.
• Next earnings are expected to be released in 71 days.

What The Experts Say On Lam Research

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $1024.0.

• Consistent in their evaluation, an analyst from Wells Fargo keeps a Equal-Weight rating on Lam Research with a target price of $1000.
• An analyst from Needham downgraded its action to Buy with a price target of $1130.
• An analyst from Deutsche Bank has decided to maintain their Buy rating on Lam Research, which currently sits at a price target of $950.
• Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for Lam Research, targeting a price of $990.
• An analyst from TD Cowen persists with their Buy rating on Lam Research, maintaining a target price of $1050.

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 Lam Research with Benzinga Pro for real-time alerts.

Posted In: LRCX