Market Whales and Their Recent Bets on MCHP Options

Investors with a lot of money to spend have taken a bullish stance on Microchip Technology MCHP.

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 MCHP, 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 14 uncommon options trades for Microchip Technology.

This isn't normal.

The overall sentiment of these big-money traders is split between 64% bullish and 28%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $203,318, and 9 are calls, for a total amount of $543,287.

What's The Price Target?

After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $55.0 and $77.5 for Microchip Technology, spanning the last three months.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Microchip Technology's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Microchip Technology's significant trades, within a strike price range of $55.0 to $77.5, over the past month.

Microchip Technology 30-Day Option Volume & Interest Snapshot

Largest Options Trades Observed:

About Microchip Technology

Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

Where Is Microchip Technology Standing Right Now?

• Trading volume stands at 8,896,292, with MCHP's price up by 0.7%, positioned at $60.42.
• RSI indicators show the stock to be may be overbought.
• Earnings announcement expected in 58 days.

Expert Opinions on Microchip Technology

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $61.2.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge's Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access. * An analyst from UBS persists with their Buy rating on Microchip Technology, maintaining a target price of $65. * An analyst from Raymond James downgraded its action to Strong Buy with a price target of $65. * Consistent in their evaluation, an analyst from Morgan Stanley keeps a Equal-Weight rating on Microchip Technology with a target price of $50. * An analyst from UBS persists with their Buy rating on Microchip Technology, maintaining a target price of $60. * Reflecting concerns, an analyst from Needham lowers its rating to Buy with a new price target of $66.

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