Spotify Technology Options Trading: A Deep Dive into Market Sentiment

Investors with a lot of money to spend have taken a bearish stance on Spotify Technology SPOT.

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 SPOT, 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 16 uncommon options trades for Spotify Technology.

This isn't normal.

The overall sentiment of these big-money traders is split between 43% bullish and 56%, bearish.

Out of all of the special options we uncovered, 11 are puts, for a total amount of $532,771, and 5 are calls, for a total amount of $220,609.

Latest Startup Investment Opportunities:

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $200.0 to $290.0 for Spotify Technology over the last 3 months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Spotify Technology'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 Spotify Technology's whale trades within a strike price range from $200.0 to $290.0 in the last 30 days.

Spotify Technology Option Volume And Open Interest Over Last 30 Days

Noteworthy Options Activity:

About Spotify Technology

Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 602 million total listeners. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 86% and 14% of Spotify's 2023 total revenue, respectively.

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

Present Market Standing of Spotify Technology

• With a trading volume of 559,679, the price of SPOT is down by -1.13%, reaching $238.1.
• Current RSI values indicate that the stock is may be overbought.
• Next earnings report is scheduled for 75 days from now.

What Analysts Are Saying About Spotify Technology

5 market experts have recently issued ratings for this stock, with a consensus target price of $275.8.

• An analyst from UBS has elevated its stance to Buy, setting a new price target at $274.
• Maintaining their stance, an analyst from Rosenblatt continues to hold a Buy rating for Spotify Technology, targeting a price of $315.
• An analyst from DZ Bank upgraded its action to Hold with a price target of $240.
• Maintaining their stance, an analyst from Morgan Stanley continues to hold a Overweight rating for Spotify Technology, targeting a price of $270.
• An analyst from JP Morgan persists with their Overweight rating on Spotify Technology, maintaining a target price of $280.

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 Spotify Technology, Benzinga Pro gives you real-time options trades alerts.