Someone with a lot of money to spend has taken a bullish stance on Union Pacific (NYSE:UNP).
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 UNP, it often means somebody knows something is about to happen.
So how do we know what this whale just did?
Today, Benzinga's options scanner spotted 14 uncommon options trades for Union Pacific.
This isn't normal.
The overall sentiment of these big-money traders is split between 71% bullish and 28%, bearish.
Out of all of the special options we uncovered, 12 are puts, for a total amount of $428,725, and 2 are calls, for a total amount of $171,000.
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 $105.0 to $260.0 for Union Pacific 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 Union Pacific'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 Union Pacific's whale trades within a strike price range from $105.0 to $260.0 in the last 30 days.
Union Pacific 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 |
|---|---|---|---|---|---|---|---|---|
| UNP | CALL | TRADE | BEARISH | 01/19/24 | $105.00 | $135.6K | 12 | 10 |
| UNP | PUT | TRADE | BULLISH | 06/16/23 | $250.00 | $51.0K | 186 | 90 |
| UNP | PUT | TRADE | BULLISH | 06/16/23 | $250.00 | $47.6K | 186 | 75 |
| UNP | PUT | TRADE | BULLISH | 06/16/23 | $250.00 | $47.4K | 186 | 61 |
| UNP | PUT | TRADE | BEARISH | 06/16/23 | $250.00 | $40.8K | 186 | 113 |
Where Is Union Pacific Standing Right Now?
- With a volume of 938,824, the price of UNP is down -1.52% at $241.13.
- RSI indicators hint that the underlying stock may be approaching oversold.
- Next earnings are expected to be released in 13 days.
What The Experts Say On Union Pacific:
- B of A Securities downgraded its action to Neutral with a price target of $258
- JP Morgan has decided to maintain their Overweight rating on Union Pacific, which currently sits at a price target of $276.
- Susquehanna has decided to maintain their Positive rating on Union Pacific, which currently sits at a price target of $310.
- RBC Capital downgraded its action to Sector Perform with a price target of $258
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.
