Looking At KLA's Recent Unusual Options Activity

Investors with a lot of money to spend have taken a bearish stance on KLA KLAC.

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 KLAC, 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 29 uncommon options trades for KLA.

This isn't normal.

The overall sentiment of these big-money traders is split between 31% bullish and 68%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $1,152,221, and 24 are calls, for a total amount of $1,607,396.

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Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $560.0 to $890.0 for KLA during the past quarter.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for KLA options trades today is 134.18 with a total volume of 1,701.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for KLA's big money trades within a strike price range of $560.0 to $890.0 over the last 30 days.

KLA 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

About KLA

KLA is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segment of semiconductor process control, wherein machines inspect semiconductor wafers during research and development and manufacturing for defects and verify precise measurements. In this section of the market, KLA holds a majority share. It also has a small exposure to the etch and deposition segments of the WFE market. It counts as top customers the largest chipmakers in the world, including TSMC and Samsung.

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

Current Position of KLA

• With a volume of 499,194, the price of KLAC is up 0.79% at $623.38.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 75 days.

Professional Analyst Ratings for KLA

5 market experts have recently issued ratings for this stock, with a consensus target price of $636.0.

• Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for KLA, targeting a price of $625.
• Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for KLA, targeting a price of $725.
• Consistent in their evaluation, an analyst from Barclays keeps a Underweight rating on KLA with a target price of $500.
• An analyst from Wells Fargo has decided to maintain their Overweight rating on KLA, which currently sits at a price target of $705.
• Maintaining their stance, an analyst from Raymond James continues to hold a Outperform rating for KLA, targeting a price of $625.

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 KLA options trades with real-time alerts from Benzinga Pro.