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A Closer Look at Lam Research's Options Market Dynamics
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A Closer Look at Lam Research's Options Market Dynamics
May 14, 2024 10:06 AM

Investors with a lot of money to spend have taken a bearish stance on Lam Research ( LRCX ) .

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 LRCX, it often means somebody knows something is about to happen.

Today, Benzinga's options scanner spotted 10 options trades for Lam Research ( LRCX ).

This isn't normal.

The overall sentiment of these big-money traders is split between 40% bullish and 50%, bearish.

Out of all of the options we uncovered, there was 1 put, for a total amount of $34,864, and 9, calls, for a total amount of $1,406,304.

Projected Price Targets

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $315.0 to $1000.0 for Lam Research ( LRCX ) over the last 3 months.

Volume & Open Interest Development

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Lam Research's ( LRCX ) options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Lam Research's ( LRCX ) substantial trades, within a strike price spectrum from $315.0 to $1000.0 over the preceding 30 days.

Lam Research Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
LRCX CALL SWEEP BEARISH 07/19/24 $19.0 $18.0 $18.1 $1000.00 $586.5K 126 233
LRCX CALL SWEEP BEARISH 07/19/24 $18.4 $18.4 $18.4 $1000.00 $416.8K 126 226
LRCX CALL TRADE BULLISH 07/19/24 $587.7 $587.7 $587.7 $315.00 $176.3K 1 3
LRCX CALL SWEEP BEARISH 07/19/24 $18.0 $17.8 $18.0 $1000.00 $77.4K 126 598
LRCX CALL SWEEP BEARISH 05/17/24 $7.75 $7.2 $7.3 $925.00 $36.5K 120 56

About Lam Research

Lam Research ( LRCX ) is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segments of deposition and etch, which entail the buildup of layers on a semiconductor and the subsequent selective removal of patterns from each layer. Lam holds the top market share in etch and holds the clear cut second share in deposition. It is more exposed to memory chipmakers for DRAM and NAND chips. It counts as top customers the largest chipmakers in the world, including TSMC, Samsung, Intel, and Micron.

After a thorough review of the options trading surrounding Lam Research ( LRCX ), we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Where Is Lam Research Standing Right Now?

Trading volume stands at 195,778, with LRCX's price up by 0.25%, positioned at $906.02.

RSI indicators show the stock to be is currently neutral between overbought and oversold.

Earnings announcement expected in 71 days.

What Analysts Are Saying About Lam Research

5 market experts have recently issued ratings for this stock, with a consensus target price of $1057.0.

In a cautious move, an analyst from Needham downgraded its rating to Buy, setting a price target of $1030.

Reflecting concerns, an analyst from Cantor Fitzgerald lowers its rating to Neutral with a new price target of $1100.

An analyst from Citigroup has decided to maintain their Buy rating on Lam Research ( LRCX ), which currently sits at a price target of $1025.

Consistent in their evaluation, an analyst from Needham keeps a Buy rating on Lam Research ( LRCX ) with a target price of $1030.

An analyst from Jefferies downgraded its action to Buy with a price target of $1100.

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

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