Unpacking the Latest Options Trading Trends in Trip.com Group

Investors with a lot of money to spend have taken a bearish stance on Trip.com Group TCOM.

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 TCOM, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 17 options trades for Trip.com Group.

This isn't normal.

The overall sentiment of these big-money traders is split between 47% bullish and 52%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $31,680, and 16, calls, for a total amount of $691,930.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $39.0 to $55.0 for Trip.com Group during the past quarter.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of Trip.com Group stands at 2327.11, with a total volume reaching 7,318.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Trip.com Group, situated within the strike price corridor from $39.0 to $55.0, throughout the last 30 days.

Trip.com Group 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

About Trip.com Group

Trip.com is the largest online travel agent in China and is positioned to benefit from the country's rising demand for higher-margin outbound travel as passport penetration is only 12% in China. The company generated about 78% of sales from accommodation reservations and transportation ticketing in 2020. The rest of revenue comes from package tours and corporate travel. Prior to the pandemic in 2019, the company generated 25% of revenue from international business, which is important to its margin expansion. Most of sales come from websites and mobile platforms, while the rest come from call centers. The competes in a crowded OTA industry in China, including Meituan, Alibaba-backed Fliggy, Tongcheng, and Qunar. The company was founded in 1999 and listed on the Nasdaq in December 2003.

Having examined the options trading patterns of Trip.com Group, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

Present Market Standing of Trip.com Group

• Trading volume stands at 5,834,040, with TCOM's price up by 3.65%, positioned at $46.3.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 103 days.

What Analysts Are Saying About Trip.com Group

In the last month, 4 experts released ratings on this stock with an average target price of $58.0.

• An analyst from Barclays has decided to maintain their Overweight rating on Trip.com Group, which currently sits at a price target of $60.
• An analyst from UBS has decided to maintain their Buy rating on Trip.com Group, which currently sits at a price target of $52.
• An analyst from Mizuho persists with their Buy rating on Trip.com Group, maintaining a target price of $60.
• An analyst from Barclays has decided to maintain their Overweight rating on Trip.com Group, which currently sits at a price target of $60.

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 Trip.com Group, Benzinga Pro gives you real-time options trades alerts.