Decoding Spotify Technology's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bearish 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 29 uncommon options trades for Spotify Technology.

This isn't normal.

The overall sentiment of these big-money traders is split between 41% bullish and 48%, bearish.

Out of all of the special options we uncovered, 8 are puts, for a total amount of $288,410, and 21 are calls, for a total amount of $952,202.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $200.0 to $400.0 for Spotify Technology over the recent three months.

Analyzing Volume & Open Interest

In today's trading context, the average open interest for options of Spotify Technology stands at 303.43, with a total volume reaching 3,175.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Spotify Technology, situated within the strike price corridor from $200.0 to $400.0, throughout the last 30 days.

Spotify Technology Option Activity Analysis: 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 BULLISH 01/17/25 $36.65 $36.2 $36.65 $350.00 $183.2K 1.7K 115
SPOT CALL TRADE BEARISH 07/19/24 $2.68 $2.4 $2.4 $380.00 $119.7K 197 607
SPOT PUT SWEEP BULLISH 12/19/25 $57.55 $55.85 $55.85 $320.00 $55.8K 25 12
SPOT PUT SWEEP BULLISH 12/19/25 $51.55 $50.1 $50.1 $310.00 $50.1K 41 19
SPOT CALL TRADE BEARISH 06/21/24 $13.9 $13.55 $13.55 $320.00 $48.7K 1.1K 363

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.

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

Where Is Spotify Technology Standing Right Now?

  • With a volume of 3,323,524, the price of SPOT is up 4.16% at $326.68.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 49 days.

Professional Analyst Ratings for Spotify Technology

A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $360.3333333333333.

  • Maintaining their stance, an analyst from Citigroup continues to hold a Neutral rating for Spotify Technology, targeting a price of $310.
  • An analyst from JP Morgan persists with their Overweight rating on Spotify Technology, maintaining a target price of $375.
  • Maintaining their stance, an analyst from Rosenblatt continues to hold a Buy rating for Spotify Technology, targeting a price of $396.

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 Spotify Technology with Benzinga Pro for real-time alerts.

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Posted In: OptionsMarketsBZI-UOA
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