27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
Investors with a lot of money to spend have taken a bearish stance on Cloudflare (NYSE:NET).
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 NET, 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 8 uncommon options trades for Cloudflare.
This isn't normal.
The overall sentiment of these big-money traders is split between 25% bullish and 75%, bearish.
Out of all of the special options we uncovered, 3 are puts, for a total amount of $170,540, and 5 are calls, for a total amount of $227,329.
Expected Price Movements
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $90.0 to $100.0 for Cloudflare 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 Cloudflare'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 Cloudflare's whale activity within a strike price range from $90.0 to $100.0 in the last 30 days.
Cloudflare 30-Day Option Volume & Interest Snapshot
Noteworthy Options Activity:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| NET | PUT | SWEEP | BEARISH | 04/19/24 | $5.55 | $5.4 | $5.55 | $100.00 | $69.9K | 1.7K | 131 |
| NET | CALL | TRADE | BEARISH | 06/21/24 | $13.95 | $13.8 | $13.85 | $90.00 | $69.2K | 889 | 59 |
| NET | PUT | SWEEP | BEARISH | 06/21/24 | $11.4 | $11.25 | $11.4 | $100.00 | $61.5K | 350 | 1 |
| NET | CALL | SWEEP | BEARISH | 06/21/24 | $13.95 | $13.85 | $13.85 | $90.00 | $51.2K | 889 | 87 |
| NET | CALL | SWEEP | BULLISH | 05/17/24 | $9.4 | $9.3 | $9.3 | $95.00 | $43.7K | 2.8K | 76 |
About Cloudflare
Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.
Having examined the options trading patterns of Cloudflare, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance
Current Position of Cloudflare
- Currently trading with a volume of 924,580, the NET's price is up by 0.46%, now at $95.11.
- RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
- Anticipated earnings release is in 21 days.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Cloudflare options trades with real-time alerts from Benzinga Pro.
27% profits every 20 days?
This is what Nic Chahine averages with his options buys. Not selling covered calls or spreads... BUYING options. Most traders don't even have a winning percentage of 27% buying options. He has an 83% win rate. Here's how he does it.
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