What the Options Market Tells Us About DocuSign

Investors with a lot of money to spend have taken a bullish stance on DocuSign DOCU.

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 DOCU, 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 10 uncommon options trades for DocuSign.

This isn't normal.

The overall sentiment of these big-money traders is split between 50% bullish and 50%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $68,325, and 8 are calls, for a total amount of $531,538.

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Projected Price Targets

Analyzing the Volume and Open Interest in these contracts, it seems that the big players have been eyeing a price window from $60.0 to $70.0 for DocuSign during the past quarter.

Volume & Open Interest Trends

In terms of liquidity and interest, the mean open interest for DocuSign options trades today is 3246.88 with a total volume of 10,101.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for DocuSign's big money trades within a strike price range of $60.0 to $70.0 over the last 30 days.

DocuSign Call and Put Volume: 30-Day Overview

Significant Options Trades Detected:

About DocuSign

DocuSign offers the Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its IPO in May 2018.

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

Present Market Standing of DocuSign

• With a volume of 1,585,466, the price of DOCU is down -1.21% at $61.89.
• RSI indicators hint that the underlying stock may be approaching overbought.
• Next earnings are expected to be released in 50 days.

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