Decoding ARM Holdings's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on ARM Holdings (NASDAQ:ARM).

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 ARM, 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 23 uncommon options trades for ARM Holdings.

This isn't normal.

The overall sentiment of these big-money traders is split between 52% bullish and 47%, bearish.

Out of all of the special options we uncovered, 12 are puts, for a total amount of $969,206, and 11 are calls, for a total amount of $742,527.

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 $90.0 to $120.0 for ARM Holdings during the past quarter.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of ARM Holdings stands at 1716.73, with a total volume reaching 30,237.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in ARM Holdings, situated within the strike price corridor from $90.0 to $120.0, throughout the last 30 days.

ARM Holdings Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

About ARM Holdings

Arm Holdings is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.

Following our analysis of the options activities associated with ARM Holdings, we pivot to a closer look at the company's own performance.

Where Is ARM Holdings Standing Right Now?

• Trading volume stands at 8,725,553, with ARM's price down by -7.35%, positioned at $105.52.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 96 days.

What The Experts Say On ARM Holdings

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $100.0.

• An analyst from Keybanc has decided to maintain their Overweight rating on ARM Holdings, which currently sits at a price target of $75.
• Maintaining their stance, an analyst from Mizuho continues to hold a Buy rating for ARM Holdings, targeting a price of $100.
• Consistent in their evaluation, an analyst from Barclays keeps a Overweight rating on ARM Holdings with a target price of $105.
• An analyst from JP Morgan has decided to maintain their Overweight rating on ARM Holdings, which currently sits at a price target of $100.
• Consistent in their evaluation, an analyst from Keybanc keeps a Overweight rating on ARM Holdings with a target price of $120.

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 ARM Holdings, Benzinga Pro gives you real-time options trades alerts.