What the Options Market Tells Us About Verizon Communications

Investors with a lot of money to spend have taken a bearish stance on Verizon Communications VZ.

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 VZ, 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 9 uncommon options trades for Verizon Communications.

This isn't normal.

The overall sentiment of these big-money traders is split between 33% bullish and 66%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $388,326, and 3 are calls, for a total amount of $149,725.

Expected Price Movements

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $35.0 to $45.0 for Verizon Communications over the recent three months.

Insights into Volume & Open Interest

In terms of liquidity and interest, the mean open interest for Verizon Communications options trades today is 5128.8 with a total volume of 2,684.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Verizon Communications's big money trades within a strike price range of $35.0 to $45.0 over the last 30 days.

Verizon Communications 30-Day Option Volume & Interest Snapshot

Noteworthy Options Activity:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
VZ PUT SWEEP BEARISH 10/18/24 $5.95 $5.85 $5.95 $45.00 $163.0K 528 280
VZ PUT SWEEP BEARISH 10/18/24 $4.35 $4.3 $4.35 $43.00 $86.0K 121 1
VZ CALL TRADE BEARISH 05/17/24 $5.4 $5.15 $5.23 $35.00 $52.3K 3 0
VZ CALL TRADE BULLISH 05/17/24 $5.2 $5.05 $5.15 $35.00 $51.5K 3 100
VZ PUT TRADE BULLISH 01/17/25 $2.35 $2.24 $2.25 $38.00 $51.3K 6.1K 174

About Verizon Communications

Wireless services account for about 70% of Verizon Communications' total service revenue and nearly all of its operating income. The firm serves about 93 million postpaid and 21 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 25 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.

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

Current Position of Verizon Communications

  • With a trading volume of 2,398,646, the price of VZ is up by 0.14%, reaching $39.84.
  • Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
  • Next earnings report is scheduled for 4 days from now.

Expert Opinions on Verizon Communications

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $42.333333333333336.

  • In a positive move, an analyst from Redburn Atlantic has upgraded their rating to Neutral and adjusted the price target to $39.
  • An analyst from Oppenheimer has decided to maintain their Outperform rating on Verizon Communications, which currently sits at a price target of $48.
  • Consistent in their evaluation, an analyst from RBC Capital keeps a Sector Perform rating on Verizon Communications with a target price of $40.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Verizon Communications with Benzinga Pro for real-time alerts.

Market News and Data brought to you by Benzinga APIs
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Posted In: OptionsMarketsBZI-UOA
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