Someone with a lot of money to spend has taken a bearish stance on Unity Software (NYSE:U).
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 U, 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 16 uncommon options trades for Unity Software.
This isn't normal.
The overall sentiment of these big-money traders is split between 43% bullish and 56%, bearish.
Out of all of the special options we uncovered, 5 are puts, for a total amount of $655,012, and 11 are calls, for a total amount of $901,640.
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 $70.0 to $200.0 for Unity Software over the last 3 months.
Volume & Open Interest Development
In terms of liquidity and interest, the mean open interest for Unity Software options trades today is 300.0 with a total volume of 3,490.00.
In the following chart, we are able to follow the development of volume and open interest of call and put options for Unity Software's big money trades within a strike price range of $70.0 to $200.0 over the last 30 days.
Unity Software 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 |
|---|---|---|---|---|---|---|---|---|
| U | PUT | TRADE | BULLISH | 11/18/22 | $85.00 | $266.6K | 36 | 147 |
| U | CALL | TRADE | BULLISH | 07/15/22 | $90.00 | $199.2K | 348 | 400 |
| U | PUT | TRADE | BULLISH | 01/19/24 | $70.00 | $193.4K | 73 | 106 |
| U | CALL | SWEEP | BULLISH | 07/15/22 | $90.00 | $157.3K | 348 | 40 |
| U | CALL | SWEEP | BEARISH | 07/15/22 | $90.00 | $132.8K | 348 | 562 |
Where Is Unity Software Standing Right Now?
- With a volume of 2,519,744, the price of U is down -6.11% at $78.65.
- RSI indicators hint that the underlying stock may be approaching oversold.
- Next earnings are expected to be released in 19 days.
What The Experts Say On Unity Software:
- Daiwa Capital downgraded its action to Outperform with a price target of $110
- Citigroup downgraded its action to Buy with a price target of $125
- Goldman Sachs has decided to maintain their Buy rating on Unity Software, which currently sits at a price target of $137.
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.
