The financial sphere has recently observed some intriguing activity regarding BlackRock (NYSE:BLK) options. An analysis of the company’s options history points out ten unusual trades. Dissecting the specifics of these transactions indicates a mixed sentiment among investors – 30% lean towards a bullish perspective while a dominant 70% display a bearish outlook.
In terms of the monetary weight of these trades, the four puts equate to approximately $181,230 while the six calls amount to nearly $205,710.
Whale-Set Price Expectations
Given the Volume and Open Interest of these contracts, it is clear that these large-volume investors, colloquially termed as ‘whales,’ have been forecasting a price range between $710.0 to $820.0 for BlackRock over the past quarter.
Decoding Volume and Open Interest
Exploring the volume and open interest of a stock provides valuable insights and aids in conducting in-depth due diligence. This data aids in monitoring the liquidity and interest of BlackRock’s options at a specific strike price.
A closer look at the volume and open interest of calls and puts, respectively, in the strike price range of $710.0 to $820.0 over the past 30 days provides a glimpse of BlackRock’s whale activity.
Key Options Activity Examining the major options, we identify the following:
- A bearish sweep put at $720.00 with an expiration date of September 15, 2023, was executed with a total trade price of $80.0K, exhibiting an open interest of 11 and a volume of 65.
- A neutral call trade at $710.00, expiring on July 28, 2023, was executed for a total of $55.0K, reflecting an open interest of 203 and a volume of 20.
- Another neutral put trade at $800.00, expiring on October 20, 2023, was executed with a total trade price of $39.0K, displaying an open interest of 1 and a volume of 6.
- A bullish call trade at $720.00 with an expiration date of September 1, 2023, was executed with a total trade price of $37.1K, demonstrating an open interest of 14 and a volume of 10.
- A neutral call trade at $760.00, expiring on August 18, 2023, was executed for a total of $33.0K, reflecting an open interest of 388 and a volume of 43.
The Current Standing of BlackRock
With a trading volume of 338,954, BlackRock’s share price is currently experiencing a 1.2% surge, standing at $737.85. However, RSI indicators suggest that the stock might be veering towards overbought territory. The next earnings report is expected to drop in 76 days.
Expert Opinions on BlackRock
Several financial firms have shared their perspectives on BlackRock’s current standing:
- Both Morgan Stanley and JP Morgan have opted to sustain their Overweight rating on BlackRock with price targets of $881 and $770 respectively.
- Keefe, Bruyette & Woods have upgraded their stance to Outperform with a price target of $835.
- Deutsche Bank has maintained its Buy rating on BlackRock, setting a price target of $785.
Options trading, though riskier than traditional stock trading, possesses significant profit potential. To mitigate risks, seasoned options traders rely on continual education, strategic scaling in and out of trades, using multiple indicators, and maintaining a close watch on market trends.