Investors with a lot of money to spend have taken a bullish stance on Spotify Technology SPOT.
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 SPOT, 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 8 uncommon options trades for Spotify Technology.
This isn't normal.
The overall sentiment of these big-money traders is split between 75% bullish and 25%, bearish.
Out of all of the special options we uncovered, 2 are puts, for a total amount of $227,855, and 6 are calls, for a total amount of $1,766,714.
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 $250.0 to $320.0 for Spotify Technology during the past quarter.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Spotify Technology options trades today is 295.83 with a total volume of 3,992.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Spotify Technology's big money trades within a strike price range of $250.0 to $320.0 over the last 30 days.
Spotify Technology Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SPOT | CALL | TRADE | BEARISH | 08/16/24 | $50.95 | $48.65 | $49.3 | $250.00 | $1.4M | 0 | 3.0K |
| SPOT | CALL | SWEEP | BEARISH | 05/17/24 | $0.85 | $0.78 | $0.79 | $320.00 | $164.0K | 303 | 6 |
| SPOT | PUT | TRADE | BULLISH | 07/19/24 | $4.65 | $4.4 | $4.45 | $250.00 | $158.4K | 538 | 540 |
| SPOT | PUT | SWEEP | BULLISH | 07/19/24 | $4.7 | $4.45 | $4.45 | $250.00 | $69.4K | 538 | 184 |
| SPOT | CALL | TRADE | BULLISH | 06/21/24 | $26.65 | $26.45 | $26.65 | $270.00 | $61.2K | 331 | 24 |
About Spotify Technology
Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 602 million monthly active users at the end of 2023. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 86% and 14% of Spotify's 2023 total revenue, respectively.
After a thorough review of the options trading surrounding Spotify Technology, we move to examine the company in more detail. This includes an assessment of its current market status and performance.
Current Position of Spotify Technology
- With a trading volume of 453,431, the price of SPOT is down by -0.52%, reaching $284.75.
- Current RSI values indicate that the stock is may be approaching overbought.
- Next earnings report is scheduled for 84 days from now.
What Analysts Are Saying About Spotify Technology
In the last month, 5 experts released ratings on this stock with an average target price of $340.0.
- Maintaining their stance, an analyst from JP Morgan continues to hold a Overweight rating for Spotify Technology, targeting a price of $320.
- An analyst from Pivotal Research persists with their Buy rating on Spotify Technology, maintaining a target price of $400.
- Maintaining their stance, an analyst from Deutsche Bank continues to hold a Buy rating for Spotify Technology, targeting a price of $340.
- An analyst from Piper Sandler downgraded its action to Neutral with a price target of $320.
- Maintaining their stance, an analyst from Raymond James continues to hold a Outperform rating for Spotify Technology, targeting a price of $320.
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 Spotify Technology, Benzinga Pro gives you real-time options trades alerts.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date of Trade | ticker | Put/Call | Strike Price | DTE | Sentiment |
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