A Closer Look at ServiceNow's Options Market Dynamics - ServiceNow (NYSE:NOW)

Investors with a lot of money to spend have taken a bearish stance on ServiceNow (NYSE:NOW).

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 NOW, 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 31 uncommon options trades for ServiceNow.

This isn't normal.

The overall sentiment of these big-money traders is split between 9% bullish and 45%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $147,805, and 28 are calls, for a total amount of $1,562,240.

What's The Price Target?

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $600.0 to $1200.0 for ServiceNow over the recent three months.

Insights into 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 $1200.0, over the past month.

ServiceNow 30-Day Option Volume & Interest Snapshot

Significant Options Trades Detected:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
NOW	CALL	TRADE	BEARISH	02/14/25	$50.5	$48.5	$48.5	$1065.00	$121.2K	3	27
NOW	CALL	SWEEP	BEARISH	01/17/25	$61.5	$58.4	$58.74	$1010.00	$117.5K	109	46
NOW	CALL	TRADE	NEUTRAL	06/20/25	$492.5	$478.4	$485.48	$600.00	$97.0K	37	2
NOW	CALL	TRADE	NEUTRAL	02/07/25	$176.8	$165.8	$171.0	$900.00	$85.5K	0	5
NOW	CALL	TRADE	NEUTRAL	01/31/25	$175.0	$161.6	$169.0	$900.00	$84.5K	0	5

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.

Having examined the options trading patterns of ServiceNow, our attention now turns directly to the company. This shift allows us to delve into its present market position and performance

ServiceNow's Current Market Status

Trading volume stands at 387,072, with NOW's price up by 1.93%, positioned at $1077.52.
RSI indicators show the stock to be is currently neutral between overbought and oversold.
Earnings announcement expected in 12 days.

What The Experts Say On ServiceNow

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $1202.0.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * Reflecting concerns, an analyst from Raymond James lowers its rating to Outperform with a new price target of $1200. * An analyst from RBC Capital has decided to maintain their Outperform rating on ServiceNow, which currently sits at a price target of $1210. * Maintaining their stance, an analyst from Canaccord Genuity continues to hold a Buy rating for ServiceNow, targeting a price of $1200. * An analyst from Piper Sandler has decided to maintain their Overweight rating on ServiceNow, which currently sits at a price target of $1200. * Maintaining their stance, an analyst from Goldman Sachs continues to hold a Buy rating for ServiceNow, targeting a price of $1200.

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.

NOWServiceNow Inc

$103.403.48%

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