Looking At ServiceNow’s Recent Whale Trades

Someone with a lot of money to spend has taken a bearish stance on ServiceNow NOW.

And retail traders should know.

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

Whether this is an institution or just a wealthy individual, we don’t know. But when something this big happens with NOW, it often means somebody knows something is about to happen.

So how do we know what this whale just did?

Today, Benzinga’s options scanner spotted 19 uncommon options trades for ServiceNow.

This isn’t normal.

The overall sentiment of these big-money traders is split between 36% bullish and 63%, bearish.

Out of all the special options we uncovered, 14 are puts, for a total amount of $519,286, and 5 are calls, for a total amount of $213,780.

What’s the price target?

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 $510.0 for ServiceNow over the last 3 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 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 $210.0 to $510.0 in the last 30 days.

ServiceNow Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
NOW CALL SWEEP BULLISH 08/19/22 $440.00 $64.9K 287 10
NOW PUT TRADE BULLISH 01/20/23 $500.00 $57.6K 818 17
NOW CALL TRADE BEARISH 08/19/22 $450.00 $51.5K 348 10
NOW PUT SWEEP BEARISH 09/16/22 $460.00 $46.3K 319 44
NOW PUT TRADE NEUTRAL 01/20/23 $510.00 $45.7K 141 9

Where Is ServiceNow Standing Right Now?

  • With a volume of 652,889, the price of NOW is down -0.54% at $503.75.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 72 days.

What The Experts Say On ServiceNow:

  • Barclays has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $560.
  • Guggenheim downgraded its action to Neutral with a price target of $510
  • Keybanc has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $520.
  • Oppenheimer has decided to maintain their Outperform rating on ServiceNow, which currently sits at a price target of $505.
  • Wells Fargo has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $550.

Options are a riskier asset compared to just trading the stock, but they have higher profit potential. Serious options traders manage this risk by educating themselves daily, scaling in and out of trades, following more than one indicator, and following the markets closely.

If you want to stay updated on the latest options trades for ServiceNow, Benzinga Pro gives you real-time options trades alerts.

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