Unpacking the Latest Options Trading Trends in Cloudflare

Investors with a lot of money to spend have taken a bearish stance on Cloudflare NET.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don’t know. But when something this big happens with NET, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga‘s options scanner spotted 43 uncommon options trades for Cloudflare.

This isn’t normal.

The overall sentiment of these big-money traders is split between 34% bullish and 46%, bearish.

Out of all of the special options we uncovered, 10 are puts, for a total amount of $355,210, and 33 are calls, for a total amount of $2,126,381.

What’s The Price Target?

After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between $80.0 and $210.0 for Cloudflare, spanning the last three months.

Volume & Open Interest Development

Examining the volume and open interest provides crucial insights into stock research. This information is key in gauging liquidity and interest levels for Cloudflare’s options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Cloudflare’s significant trades, within a strike price range of $80.0 to $210.0, over the past month.

Cloudflare Option Activity Analysis: Last 30 Days

Significant Options Trades Detected:

About Cloudflare

Cloudflare is a software company based in San Francisco, California, that offers security and web performance offerings by utilizing a distributed, serverless content delivery network, or CDN. The firm’s edge computing platform, Workers, leverages this network by providing clients the ability to deploy, and execute code without maintaining servers.

After a thorough review of the options trading surrounding Cloudflare, we move to examine the company in more detail. This includes an assessment of its current market status and performance.

Present Market Standing of Cloudflare

• With a volume of 2,268,820, the price of NET is up 2.4% at $143.51.
• RSI indicators hint that the underlying stock may be overbought.
• Next earnings are expected to be released in 1 days.

Professional Analyst Ratings for Cloudflare

In the last month, 5 experts released ratings on this stock with an average target price of $140.0.

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* An analyst from Needham persists with their Buy rating on Cloudflare, maintaining a target price of $160.
* An analyst from Truist Securities has decided to maintain their Buy rating on Cloudflare, which currently sits at a price target of $140.
* An analyst from Baird has revised its rating downward to Neutral, adjusting the price target to $140.
* An analyst from Scotiabank persists with their Sector Perform rating on Cloudflare, maintaining a target price of $110.
* An analyst from Wells Fargo persists with their Overweight rating on Cloudflare, maintaining a target price of $150.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Cloudflare with Benzinga Pro for real-time alerts.