Looking At Cloudflare's Recent Unusual Options Activity

Author: Benzinga Insights | March 07, 2024 04:30pm

Investors with a lot of money to spend have taken a bullish stance on Cloudflare (NYSE:NET).

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 NET, 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 22 uncommon options trades for Cloudflare.

This isn't normal.

The overall sentiment of these big-money traders is split between 54% bullish and 45%, bearish.

Out of all of the special options we uncovered, 3 are puts, for a total amount of $121,100, and 19 are calls, for a total amount of $1,034,952.

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 $80.0 to $125.0 for Cloudflare during the past quarter.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Cloudflare stands at 968.47, with a total volume reaching 3,739.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Cloudflare, situated within the strike price corridor from $80.0 to $125.0, throughout the last 30 days.

Cloudflare Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Strike Price	Total Trade Price	Open Interest	Volume
NET	CALL	SWEEP	BULLISH	06/21/24	$120.00	$126.2K	776	250
NET	CALL	SWEEP	NEUTRAL	03/08/24	$100.00	$99.6K	1.9K	2.1K
NET	CALL	TRADE	BEARISH	06/21/24	$90.00	$90.0K	919	50
NET	CALL	SWEEP	BULLISH	01/17/25	$100.00	$77.8K	2.8K	47
NET	CALL	SWEEP	NEUTRAL	06/21/24	$90.00	$75.7K	919	91

About Cloudflare

Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm's edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.

Where Is Cloudflare Standing Right Now?

• Currently trading with a volume of 2,856,866, the NET's price is up by 0.88%, now at $98.35.
• RSI readings suggest the stock is currently may be approaching overbought.
• Anticipated earnings release is in 49 days.

Professional Analyst Ratings for Cloudflare

In the last month, 5 experts released ratings on this stock with an average target price of $106.4.

• An analyst from Cantor Fitzgerald has revised its rating downward to Neutral, adjusting the price target to $100.
• An analyst from Cantor Fitzgerald downgraded its action to Neutral with a price target of $100.
• An analyst from RBC Capital has decided to maintain their Outperform rating on Cloudflare, which currently sits at a price target of $108.
• Consistent in their evaluation, an analyst from Keybanc keeps a Overweight rating on Cloudflare with a target price of $132.
• Maintaining their stance, an analyst from Morgan Stanley continues to hold a Equal-Weight rating for Cloudflare, targeting a price of $92.

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

Posted In: NET