Decoding ServiceNow's Options Activity: What's the Big Picture?

Financial giants have made a conspicuous bullish move on ServiceNow. Our analysis of options history for ServiceNow NOW revealed 22 unusual trades.

Delving into the details, we found 50% of traders were bullish, while 40% showed bearish tendencies. Out of all the trades we spotted, 6 were puts, with a value of $273,338, and 16 were calls, valued at $1,211,885.

Predicted Price Range

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $600.0 to $750.0 for ServiceNow over the last 3 months.

Analyzing Volume & Open Interest

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for ServiceNow's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across ServiceNow's significant trades, within a strike price range of $600.0 to $750.0, over the past month.

ServiceNow Call and Put Volume: 30-Day Overview

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
NOW CALL TRADE BEARISH 01/17/25 $176.4 $170.0 $170.0 $600.00 $510.0K 403 0
NOW CALL TRADE NEUTRAL 05/31/24 $25.5 $20.9 $22.8 $710.00 $91.2K 12 80
NOW CALL SWEEP BEARISH 05/31/24 $27.0 $24.8 $24.8 $720.00 $79.3K 76 48
NOW CALL SWEEP BEARISH 05/31/24 $26.7 $24.6 $24.6 $720.00 $73.8K 76 80
NOW PUT SWEEP BULLISH 11/15/24 $51.2 $49.2 $51.2 $690.00 $71.6K 2 0

About ServiceNow

ServiceNow Inc provides software solutions to structure and automate various business processes via a SaaS delivery model. The company primarily focuses on the IT function for enterprise customers. ServiceNow began with IT service management, expanded within the IT function, and more recently directed its workflow automation logic to functional areas beyond IT, notably customer service, HR service delivery, and security operations. ServiceNow also offers an application development platform as a service.

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

Current Position of ServiceNow

  • With a trading volume of 306,204, the price of NOW is down by -2.63%, reaching $707.46.
  • Current RSI values indicate that the stock is may be approaching oversold.
  • Next earnings report is scheduled for 78 days from now.

What The Experts Say On ServiceNow

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $882.0.

  • Consistent in their evaluation, an analyst from Jefferies keeps a Buy rating on ServiceNow with a target price of $900.
  • Maintaining their stance, an analyst from UBS continues to hold a Buy rating for ServiceNow, targeting a price of $875.
  • An analyst from UBS has decided to maintain their Buy rating on ServiceNow, which currently sits at a price target of $920.
  • Maintaining their stance, an analyst from Baird continues to hold a Outperform rating for ServiceNow, targeting a price of $885.
  • An analyst from Morgan Stanley persists with their Overweight rating on ServiceNow, maintaining a target price of $830.

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

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