Someone with a lot of money to spend has taken a bearish stance on Dow (NYSE:DOW).
And retail traders should know.
We noticed this today when the big position showed up on publicly available options history that we track here at Benzinga.
Whether this is an institution or just a wealthy individual, we don't know. But when something this big happens with DOW, it often means somebody knows something is about to happen.
Today, Benzinga's options scanner spotted 10 options trades for Dow.
This isn't normal.
The overall sentiment of these big-money traders is split between 20% bullish and 80%, bearish.
Out of all of the options we uncovered, 9 are puts, for a total amount of $782,735, and there was 1 call, for a total amount of $29,757.
What's The Price Target?
Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $50.0 to $80.0 for Dow over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is a powerful move while trading options. This data can help you track the liquidity and interest for Dow's options for a given strike price. Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of Dow's whale trades within a strike price range from $50.0 to $80.0 in the last 30 days.
Dow Option Volume And Open Interest Over Last 30 Days
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|
| DOW | PUT | TRADE | NEUTRAL | 06/17/22 | $80.00 | $434.7K | 187 | 180 |
| DOW | PUT | SWEEP | BULLISH | 06/17/22 | $55.00 | $98.2K | 6.0K | 624 |
| DOW | PUT | SWEEP | BULLISH | 09/16/22 | $55.00 | $47.7K | 1.1K | 129 |
| DOW | PUT | SWEEP | BEARISH | 09/16/22 | $62.50 | $47.4K | 605 | 180 |
| DOW | PUT | SWEEP | NEUTRAL | 08/19/22 | $50.00 | $37.6K | 45 | 256 |
Where Is Dow Standing Right Now?
- With a volume of 2,395,364, the price of DOW is down -3.54% at $55.38.
- RSI indicators hint that the underlying stock may be oversold.
- Next earnings are expected to be released in 35 days.
What The Experts Say On Dow:
- Piper Sandler downgraded its action to Neutral with a price target of $78
- B of A Securities has decided to maintain their Underperform rating on Dow, which currently sits at a price target of $60.
- Evercore ISI Group downgraded its action to In-Line with a price target of $68
- Credit Suisse downgraded its action to Neutral with a price target of $67
- Jefferies has decided to maintain their Buy rating on Dow, which currently sits at a price target of $74.
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 Dow, Benzinga Pro gives you real-time options trades alerts.
