What Are Whales Doing With Lam Research

What Are Whales Doing With Lam Research

 

Someone with a lot of money to spend has taken a bearish stance on Lam Research LRCX.

And retail traders should know.

We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.

Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with LRCX, it often means somebody knows something is about to happen.

So how do we know what this whale just did?

Today, Benzinga's options scanner spotted 15 uncommon options trades for Lam Research.

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 60%, bearish.

Out of all of the special options we uncovered, 11 are puts, for a total amount of $580,685, and 4 are calls, for a total amount of $189,593.

What's The Price Target?

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $450.0 to $550.0 for Lam Research over the last 3 months.

Volume & Open Interest Development

Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Lam Research's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Lam Research's whale trades within a strike price range from $450.0 to $550.0 in the last 30 days.

Lam Research Option Volume And Open Interest Over Last 30 Days

Biggest Options Spotted:

 

Symbol PUT/CALL Trade Type Sentiment Exp. Date Strike Price Total Trade Price Open Interest Volume
LRCX PUT SWEEP BULLISH 08/12/22 $480.00 $127.2K 356 22
LRCX PUT SWEEP NEUTRAL 08/12/22 $480.00 $125.7K 356 122
LRCX CALL SWEEP BULLISH 08/19/22 $475.00 $99.0K 233 175
LRCX PUT TRADE BULLISH 08/12/22 $500.00 $58.0K 157 11
LRCX PUT TRADE BULLISH 09/16/22 $550.00 $46.8K 1.1K 6

Where Is Lam Research Standing Right Now?

  • With a volume of 453,611, the price of LRCX is down -5.99% at $479.04.
  • RSI indicators hint that the underlying stock may be approaching overbought.
  • Next earnings are expected to be released in 71 days.

What The Experts Say On Lam Research:

  • Wells Fargo has decided to maintain their Equal-Weight rating on Lam Research, which currently sits at a price target of $475.
  • Wells Fargo has decided to maintain their Equal-Weight rating on Lam Research, which currently sits at a price target of $460.
  • Barclays downgraded its action to Equal-Weight with a price target of $450
  • Morgan Stanley has decided to maintain their Overweight rating on Lam Research, which currently sits at a price target of $550.
  • Deutsche Bank has decided to maintain their Hold rating on Lam Research, which currently sits at a price target of $480.

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

Posted In: BZI-UOAOptionsMarkets