What the Options Market Tells Us About Cummins

Investors with a lot of money to spend have taken a bullish stance on Cummins CMI.

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 this is an institution or just a wealthy individual, we don't know. But when something this big happens with CMI, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 11 options trades for Cummins.

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 options we uncovered, 10 are puts, for a total amount of $38,431,345, and there was 1 call, for a total amount of $32,800.

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 $250.0 to $330.0 for Cummins during the past quarter.

Volume & Open Interest Development

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Cummins's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Cummins's substantial trades, within a strike price spectrum from $250.0 to $330.0 over the preceding 30 days.

Cummins Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

About Cummins

Cummins is the top manufacturer of diesel engines used in commercial trucks, off-highway equipment, and railroad locomotives, in addition to standby and prime power generators. The company also sells powertrain components, which include transmissions, turbochargers, aftertreatment systems, and fuel systems. Cummins is in the unique position of competing with its primary customers, heavy-duty truck manufacturers, who make and aggressively market their own engines. Despite robust competition across all its segments and increasing government regulation of carbon emissions, Cummins has maintained its leadership position in the industry.

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

Current Position of Cummins

• With a trading volume of 10,132,158, the price of CMI is up by 0.51%, reaching $269.96.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 50 days from now.

Professional Analyst Ratings for Cummins

Over the past month, 2 industry analysts have shared their insights on this stock, proposing an average target price of $264.5.

• Maintaining their stance, an analyst from Citigroup continues to hold a Buy rating for Cummins, targeting a price of $285.
• An analyst from Evercore ISI Group persists with their In-Line rating on Cummins, maintaining a target price of $244.

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