Decoding Diamondback Energy's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bullish stance on Diamondback Energy FANG.

And retail traders should know.

We noticed this today when the positions 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 FANG, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 18 options trades for Diamondback Energy.

This isn't normal.

The overall sentiment of these big-money traders is split between 66% bullish and 33%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $30,600, and 17, calls, for a total amount of $1,334,170.

Latest Startup Investment Opportunities:

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 $160.0 to $200.0 for Diamondback Energy over the last 3 months.

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 Diamondback Energy's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Diamondback Energy's significant trades, within a strike price range of $160.0 to $200.0, over the past month.

Diamondback Energy 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

About Diamondback Energy

Diamondback Energy is an independent oil and gas producer in the United States. The company operates exclusively in the Permian Basin. At the end of 2022, the company reported net proven reserves of 2 billion barrels of oil equivalent. Net production averaged about 386,000 barrels per day in 2022, at a ratio of 58% oil, 21% natural gas liquids, and 21% natural gas.

After a thorough review of the options trading surrounding Diamondback Energy, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Diamondback Energy's Current Market Status

• Currently trading with a volume of 1,380,583, the FANG's price is up by 0.31%, now at $179.08.
• RSI readings suggest the stock is currently may be overbought.
• Anticipated earnings release is in 4 days.

What The Experts Say On Diamondback Energy

In the last month, 5 experts released ratings on this stock with an average target price of $183.0.

• An analyst from Susquehanna has decided to maintain their Positive rating on Diamondback Energy, which currently sits at a price target of $190.
• Maintaining their stance, an analyst from Raymond James continues to hold a Strong Buy rating for Diamondback Energy, targeting a price of $185.
• An analyst from RBC Capital has decided to maintain their Outperform rating on Diamondback Energy, which currently sits at a price target of $195.
• An analyst from BMO Capital has decided to maintain their Market Perform rating on Diamondback Energy, which currently sits at a price target of $175.
• An analyst from B of A Securities has elevated its stance to Neutral, setting a new price target at $170.

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 Diamondback Energy options trades with real-time alerts from Benzinga Pro.