Spotlight on Synopsys: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bearish stance on Synopsys SNPS.

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

Today, Benzinga's options scanner spotted 12 options trades for Synopsys.

This isn't normal.

The overall sentiment of these big-money traders is split between 25% bullish and 75%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $90,220, and 11, calls, for a total amount of $531,196.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $500.0 to $800.0 for Synopsys over the recent three months.

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 Synopsys's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Synopsys's substantial trades, within a strike price spectrum from $500.0 to $800.0 over the preceding 30 days.

Synopsys Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

About Synopsys

Synopsys is a provider of electronic design automation software, intellectual property, and software integrity products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. The firm's growing SI business allows customers to continuously manage and test the code base for security and quality. Synopsys' 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 chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.

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

Synopsys's Current Market Status

• With a trading volume of 597,789, the price of SNPS is down by -0.08%, reaching $601.5.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 54 days from now.

Professional Analyst Ratings for Synopsys

Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $643.75.

• An analyst from Baird has decided to maintain their Outperform rating on Synopsys, which currently sits at a price target of $640.
• An analyst from Rosenblatt downgraded its action to Buy with a price target of $615.
• An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $660.
• An analyst from Needham has revised its rating downward to Buy, adjusting the price target to $660.

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