A Closer Look at Bitfarms's Options Market Dynamics

Author: Benzinga Insights | March 25, 2024 04:01pm

Investors with a lot of money to spend have taken a bearish stance on Bitfarms (NASDAQ:BITF).

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 BITF, 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 16 uncommon options trades for Bitfarms.

This isn't normal.

The overall sentiment of these big-money traders is split between 31% bullish and 68%, bearish.

Out of all of the special options we uncovered, 2 are puts, for a total amount of $69,765, and 14 are calls, for a total amount of $531,583.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $0.5 to $5.0 for Bitfarms over the last 3 months.

Volume & Open Interest Trends

Assessing the volume and open interest is a strategic step in options trading. These metrics shed light on the liquidity and investor interest in Bitfarms's options at specified strike prices. The forthcoming data visualizes the fluctuation in volume and open interest for both calls and puts, linked to Bitfarms's substantial trades, within a strike price spectrum from $0.5 to $5.0 over the preceding 30 days.

Bitfarms Option Activity Analysis: Last 30 Days

Biggest Options Spotted:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Strike Price	Total Trade Price	Open Interest	Volume
BITF	CALL	TRADE	BEARISH	04/19/24	$2.50	$52.0K	6.2K	2.5K
BITF	CALL	TRADE	BEARISH	01/17/25	$2.50	$48.3K	14.3K	1.9K
BITF	CALL	TRADE	BEARISH	01/16/26	$2.50	$43.5K	18.1K	1.3K
BITF	CALL	SWEEP	BEARISH	01/16/26	$2.50	$43.2K	18.1K	1.6K
BITF	CALL	TRADE	NEUTRAL	01/17/25	$2.50	$42.0K	14.3K	1.9K

About Bitfarms

Bitfarms Ltd engaged in the cryptocurrency Mining industry mainly consists of selling its computational power used for hashing calculations for cryptocurrency mining in multiple jurisdictions. Its geographic operations are currently located in Canada, the United States, Argentina, and Paraguay. It owns and operates server farms comprised of computers designed to validate transactions on the Bitcoin Blockchain.

Bitfarms's Current Market Status

• Currently trading with a volume of 39,273,721, the BITF's price is down by -0.87%, now at $2.29.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 49 days.

What Analysts Are Saying About Bitfarms

Over the past month, 3 industry analysts have shared their insights on this stock, proposing an average target price of $4.0.

• An analyst from Cantor Fitzgerald has decided to maintain their Overweight rating on Bitfarms, which currently sits at a price target of $4.
• Reflecting concerns, an analyst from HC Wainwright & Co. lowers its rating to Buy with a new price target of $4.
• Reflecting concerns, an analyst from HC Wainwright & Co. lowers its rating to Buy with a new price target of $4.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Bitfarms options trades with real-time alerts from Benzinga Pro.

Posted In: BITF