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 bullish 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 31 uncommon options trades for Cloudflare.
This isn't normal.
The overall sentiment of these big-money traders is split between 54% bullish and 45%, bearish.
Out of all of the special options we uncovered, 20 are puts, for a total amount of $1,894,282, and 11 are calls, for a total amount of $506,082.
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 $55.0 to $170.0 for Cloudflare during the past quarter.
Volume & Open Interest Trends
Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Cloudflare's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Cloudflare's significant trades, within a strike price range of $55.0 to $170.0, over the past month.
Cloudflare Call and Put Volume: 30-Day Overview
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 | BULLISH | 05/17/24 | $6.35 | $6.25 | $6.25 | $85.00 | $306.2K | 2.2K | 214 |
| NET | PUT | SWEEP | BULLISH | 01/17/25 | $5.9 | $5.7 | $5.7 | $65.00 | $244.0K | 3.2K | 294 |
| NET | PUT | TRADE | BULLISH | 05/17/24 | $10.1 | $9.9 | $9.9 | $90.00 | $222.7K | 3.5K | 572 |
| NET | PUT | TRADE | BULLISH | 01/16/26 | $87.65 | $85.85 | $85.85 | $170.00 | $94.4K | 1 | 22 |
| NET | PUT | TRADE | BEARISH | 01/16/26 | $86.45 | $83.85 | $85.45 | $170.00 | $93.9K | 1 | 0 |
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.
After a thorough review of the options trading surrounding Cloudflare, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Cloudflare's Current Market Status
- With a trading volume of 2,828,997, the price of NET is down by -3.31%, reaching $83.84.
- Current RSI values indicate that the stock is may be oversold.
- Next earnings report is scheduled for 13 days from now.
What The Experts Say On Cloudflare
A total of 2 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $97.5.
- Maintaining their stance, an analyst from Mizuho continues to hold a Neutral rating for Cloudflare, targeting a price of $95.
- An analyst from Cantor Fitzgerald downgraded its action to Neutral with a price target of $100.
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 Cloudflare with Benzinga Pro for real-time alerts.
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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