Unpacking the Latest Options Trading Trends in Cadence Design Sys

Investors with a lot of money to spend have taken a bearish stance on Cadence Design Sys CDNS.

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 CDNS, 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 10 uncommon options trades for Cadence Design Sys.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 70%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $183,333, and 6 are calls, for a total amount of $715,151.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $280.0 and $345.0 for Cadence Design Sys, spanning the last three months.

Volume & Open Interest Trends

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for Cadence Design Sys'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 Cadence Design Sys's whale activity within a strike price range from $280.0 to $345.0 in the last 30 days.

Cadence Design Sys Option Activity Analysis: Last 30 Days

Noteworthy Options Activity:

About Cadence Design Sys

Cadence Design Systems is a provider of electronic design automation software, intellectual property, and system design and analysis products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Cadence offers a portfolio of design IP, as well as system design and analysis products, which enable system-level analysis and verification solutions. Cadence's comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house semiconductor design. The resulting expansion in EDA customers, alongside secular digitalization of various end markets, benefits EDA vendors like Cadence.

In light of the recent options history for Cadence Design Sys, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Cadence Design Sys

• Currently trading with a volume of 792,128, the CDNS's price is up by 0.74%, now at $308.0.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 41 days.

What Analysts Are Saying About Cadence Design Sys

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $317.4.

• Reflecting concerns, an analyst from Rosenblatt lowers its rating to Neutral with a new price target of $280.
• Consistent in their evaluation, an analyst from Stifel keeps a Buy rating on Cadence Design Sys with a target price of $350.
• An analyst from Needham downgraded its action to Buy with a price target of $320.
• Consistent in their evaluation, an analyst from Baird keeps a Outperform rating on Cadence Design Sys with a target price of $302.
• An analyst from Keybanc has decided to maintain their Overweight rating on Cadence Design Sys, which currently sits at a price target of $335.

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 Cadence Design Sys, Benzinga Pro gives you real-time options trades alerts.