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Looking At ARM Holdings's Recent Unusual Options Activity
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Looking At ARM Holdings's Recent Unusual Options Activity
Apr 10, 2024 9:21 AM

Investors with a lot of money to spend have taken a bearish stance on ARM Holdings ( ARM ) .

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 ARM, 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 24 uncommon options trades for ARM Holdings ( ARM ).

This isn't normal.

The overall sentiment of these big-money traders is split between 41% bullish and 58%, bearish.

Out of all of the special options we uncovered, 10 are puts, for a total amount of $734,483, and 14 are calls, for a total amount of $927,510.

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 $72.5 and $240.0 for ARM Holdings ( ARM ), spanning the last three months.

Volume & Open Interest Trends

In today's trading context, the average open interest for options of ARM Holdings ( ARM ) stands at 1870.52, with a total volume reaching 3,039.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in ARM Holdings ( ARM ), situated within the strike price corridor from $72.5 to $240.0, throughout the last 30 days.

ARM Holdings Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
ARM PUT TRADE BULLISH 01/17/25 $116.2 $115.0 $115.48 $240.00 $173.2K 90 60
ARM CALL TRADE BULLISH 04/26/24 $17.1 $16.9 $17.1 $110.00 $169.2K 1.0K 1
ARM PUT TRADE BULLISH 01/17/25 $15.9 $15.3 $15.5 $110.00 $162.7K 1.2K 0
ARM CALL TRADE BEARISH 01/16/26 $47.2 $46.5 $46.5 $120.00 $139.5K 7.8K 30
ARM CALL SWEEP BULLISH 07/19/24 $20.3 $20.2 $20.3 $120.00 $101.4K 118 2

About ARM Holdings

Arm Holdings ( ARM ) is the IP owner and developer of the ARM architecture (ARM stands for Acorn RISC Machine), which is used in 99% of the world's smartphone CPU cores, and it also has high market share in other battery-powered devices like wearables, tablets, or sensors. Arm licenses its architecture for a fee, offering different types of licenses depending on the flexibility the customer needs. Customers like Apple or Qualcomm buy architectural licenses, which allows them to modify the architecture and add or delete instructions to tailor the chips to their specific needs. Other clients directly buy off-the-shelf designs from Arm. Both off-the-shelf and architectural customers pay a royalty fee per chip shipped.

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

ARM Holdings's Current Market Status

With a trading volume of 2,623,938, the price of ARM is down by -1.52%, reaching $124.88.

Current RSI values indicate that the stock is is currently neutral between overbought and oversold.

Next earnings report is scheduled for 28 days from now.

Professional Analyst Ratings for ARM Holdings

A total of 3 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $109.33333333333333.

An analyst from Keybanc has decided to maintain their Overweight rating on ARM Holdings ( ARM ), which currently sits at a price target of $135.

An analyst from Goldman Sachs persists with their Buy rating on ARM Holdings ( ARM ), maintaining a target price of $108.

An analyst from Susquehanna persists with their Neutral rating on ARM Holdings ( ARM ), maintaining a target price of $85.

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 ARM Holdings ( ARM ), Benzinga Pro gives you real-time options trades alerts.

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