What the Options Market Tells Us About Cummins

Investors with a lot of money to spend have taken a bearish 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 these are institutions or just wealthy individuals, we don't know. But when something this big happens with CMI, 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 Cummins.

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, 8 are puts, for a total amount of $17,001,430, and 2 are calls, for a total amount of $164,080.

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 $240.0 to $370.0 for Cummins during the past quarter.

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 Cummins'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 Cummins's whale activity within a strike price range from $240.0 to $370.0 in the last 30 days.

Cummins 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

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.

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

Where Is Cummins Standing Right Now?

• With a volume of 1,422,199, the price of CMI is down 0.0% at $269.77.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 48 days.

Expert Opinions on Cummins

In the last month, 1 experts released ratings on this stock with an average target price of $244.0.

• Consistent in their evaluation, an analyst from Evercore ISI Group keeps a In-Line rating on Cummins with a target price of $244.

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 Cummins, Benzinga Pro gives you real-time options trades alerts.