Verizon Communications's Options Frenzy: What You Need to Know

Investors with a lot of money to spend have taken a bearish stance on Verizon Communications VZ.

And retail traders should know.

We noticed this today when the positions 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 VZ, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 13 options trades for Verizon Communications.

This isn't normal.

The overall sentiment of these big-money traders is split between 38% bullish and 61%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $28,600, and 12, calls, for a total amount of $846,255.

What's The Price Target?

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $34.0 to $40.0 for Verizon Communications during the past quarter.

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 Verizon Communications's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Verizon Communications's significant trades, within a strike price range of $34.0 to $40.0, over the past month.

Verizon Communications Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

About Verizon Communications

Verizon Communications is primarily a wireless business (it provides about 70% of service revenue and nearly all operating income). It serves about 92 million postpaid and 22 million prepaid phone customers (following the acquisition of Tracfone) via its nationwide network, making it the largest U.S. wireless carrier. Fixed-line telecom operations include local networks in the Northeast, which reach about 25 million homes and businesses and serve about 8 million broadband customers. Verizon also provides telecom services nationwide to enterprise customers, often using a mixture of its own and other carriers' networks.

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

Present Market Standing of Verizon Communications

• Trading volume stands at 10,689,886, with VZ's price up by 1.25%, positioned at $39.65.
• RSI indicators show the stock to be may be approaching overbought.
• Earnings announcement expected in 19 days.

What The Experts Say On Verizon Communications

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $43.2.

• An analyst from Wolfe Research has elevated its stance to Outperform, setting a new price target at $46.
• An analyst from Citigroup has decided to maintain their Buy rating on Verizon Communications, which currently sits at a price target of $42.
• In a positive move, an analyst from Keybanc has upgraded their rating to Overweight and adjusted the price target to $45.
• Reflecting concerns, an analyst from Oppenheimer lowers its rating to Outperform with a new price target of $43.
• An analyst from Wells Fargo persists with their Equal-Weight rating on Verizon Communications, maintaining a target price of $40.

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