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What the Options Market Tells Us About United Parcel Service

Author: Benzinga Insights | August 16, 2024 02:32pm

Investors with a lot of money to spend have taken a bullish stance on United Parcel Service (NYSE:UPS).

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don't know. But when something this big happens with UPS, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga's options scanner spotted 11 uncommon options trades for United Parcel Service.

This isn't normal.

The overall sentiment of these big-money traders is split between 54% bullish and 36%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $153,358, and 8 are calls, for a total amount of $571,465.

Expected Price Movements

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $100.0 and $155.0 for United Parcel Service, spanning the last three months.

Volume & Open Interest Development

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 United Parcel Service'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 United Parcel Service's whale activity within a strike price range from $100.0 to $155.0 in the last 30 days.

United Parcel Service 30-Day Option Volume & Interest Snapshot

Options Call Chart

Significant Options Trades Detected:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
UPS CALL TRADE NEUTRAL 01/16/26 $17.0 $16.2 $16.6 $125.00 $122.8K 434 74
UPS PUT SWEEP BULLISH 03/21/25 $6.8 $6.65 $6.7 $120.00 $94.4K 2.5K 141
UPS CALL SWEEP BEARISH 01/16/26 $34.45 $32.2 $32.2 $100.00 $80.5K 251 75
UPS CALL TRADE BULLISH 01/16/26 $32.2 $32.0 $32.2 $100.00 $80.5K 251 50
UPS CALL TRADE BULLISH 01/16/26 $32.0 $31.55 $32.0 $100.00 $80.0K 251 25

About United Parcel Service

As the world's largest parcel delivery company, UPS manages a massive fleet of more than 500 planes and 100,000 vehicles, along with many hundreds of sorting facilities, to deliver an average of about 22 million packages per day to residences and businesses across the globe. UPS' domestic US package operations generate around 64% of total revenue while international package makes up 20%. Air and ocean freight forwarding, truckload brokerage, and contract logistics make up the remainder. UPS is currently pursuing "strategic alternatives" for its truck brokerage unit, Coyote, which it acquired in 2015.

After a thorough review of the options trading surrounding United Parcel Service, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Where Is United Parcel Service Standing Right Now?

  • With a trading volume of 1,608,321, the price of UPS is up by 0.63%, reaching $129.36.
  • Current RSI values indicate that the stock is may be approaching oversold.
  • Next earnings report is scheduled for 69 days from now.

Expert Opinions on United Parcel Service

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $139.2.

  • Maintaining their stance, an analyst from Susquehanna continues to hold a Neutral rating for United Parcel Service, targeting a price of $135.
  • An analyst from Stifel has decided to maintain their Buy rating on United Parcel Service, which currently sits at a price target of $151.
  • Consistent in their evaluation, an analyst from B of A Securities keeps a Neutral rating on United Parcel Service with a target price of $158.
  • Consistent in their evaluation, an analyst from B of A Securities keeps a Neutral rating on United Parcel Service with a target price of $132.
  • An analyst from Barclays has decided to maintain their Equal-Weight rating on United Parcel Service, which currently sits at a price target of $120.

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 United Parcel Service with Benzinga Pro for real-time alerts.

Posted In: UPS

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