Someone with a lot of money to spend has taken a bullish 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 17 uncommon options trades for Unity Software.
This isn't normal.
The overall sentiment of these big-money traders is split between 64% bullish and 35%, bearish.
Out of all of the special options we uncovered, 7 are puts, for a total amount of $596,640, and 10 are calls, for a total amount of $477,663.
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 $83.0 to $200.0 for Unity Software over the last 3 months.
Volume & Open Interest Development
Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.
This data can help you track the liquidity and interest for Unity Software'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 Unity Software's whale activity within a strike price range from $83.0 to $200.0 in 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 | SWEEP | BULLISH | 05/20/22 | $125.00 | $160.4K | 911 | 72 |
| U | CALL | SWEEP | BULLISH | 11/18/22 | $115.00 | $117.4K | 160 | 71 |
| U | PUT | TRADE | BEARISH | 01/20/23 | $200.00 | $96.5K | 126 | 10 |
| U | PUT | TRADE | NEUTRAL | 01/20/23 | $200.00 | $95.2K | 126 | 20 |
| U | PUT | TRADE | BEARISH | 01/20/23 | $200.00 | $94.0K | 126 | 30 |
Where Is Unity Software Standing Right Now?
- With a volume of 2,816,680, the price of U is up 9.22% at $108.04.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 36 days.
What The Experts Say On Unity Software:
- Jefferies downgraded its action to Hold with a price target of $100
- Daiwa Capital downgraded its action to Outperform with a price target of $110
- Stifel has decided to maintain their Buy rating on Unity Software, which currently sits at a price target of $150.
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.
