A Closer Look at Lam Research's Options Market Dynamics

Investors with a lot of money to spend have taken a bearish stance on Lam Research LRCX.

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 LRCX, 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 11 uncommon options trades for Lam Research.

This isn't normal.

The overall sentiment of these big-money traders is split between 36% bullish and 63%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $121,042, and 8 are calls, for a total amount of $1,507,842.

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 $600.0 and $1020.0 for Lam Research, spanning the last three months.

Volume & Open Interest Trends

In terms of liquidity and interest, the mean open interest for Lam Research options trades today is 87.11 with a total volume of 232.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Lam Research's big money trades within a strike price range of $600.0 to $1020.0 over the last 30 days.

Lam Research 30-Day Option Volume & Interest Snapshot

Biggest Options Spotted:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
LRCX CALL SWEEP BEARISH 04/26/24 $29.7 $29.2 $29.2 $1000.00 $578.1K 92 37
LRCX CALL SWEEP BEARISH 04/19/24 $32.3 $30.0 $30.0 $950.00 $393.0K 380 132
LRCX CALL TRADE BULLISH 04/19/24 $384.7 $370.85 $380.0 $600.00 $190.0K 7 0
LRCX CALL TRADE BEARISH 09/20/24 $143.4 $141.0 $141.0 $900.00 $126.9K 47 10
LRCX CALL TRADE BULLISH 09/20/24 $143.35 $135.15 $141.4 $915.00 $70.7K 1 5

About Lam Research

Lam Research is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segments of deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear cut second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.

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

Lam Research's Current Market Status

  • Currently trading with a volume of 226,999, the LRCX's price is up by 0.97%, now at $966.32.
  • RSI readings suggest the stock is currently may be approaching overbought.
  • Anticipated earnings release is in 9 days.

Professional Analyst Ratings for Lam Research

2 market experts have recently issued ratings for this stock, with a consensus target price of $1040.0.

  • An analyst from Wells Fargo persists with their Equal-Weight rating on Lam Research, maintaining a target price of $980.
  • Maintaining their stance, an analyst from Cantor Fitzgerald continues to hold a Neutral rating for Lam Research, targeting a price of $1100.

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 Lam Research options trades with real-time alerts from Benzinga Pro.

Market News and Data brought to you by Benzinga APIs
Date of Trade
Strike Price
Posted In: OptionsMarketsBZI-UOA
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