Cloudflare's Options: A Look at What the Big Money is Thinking

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 9 uncommon options trades for Cloudflare.

This isn’t normal.

The overall sentiment of these big-money traders is split between 11% bullish and 55%, bearish.

Out of all of the special options we uncovered, 4 are puts, for a total amount of $126,920, and 5 are calls, for a total amount of $180,042.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $75.0 to $150.0 for Cloudflare over the recent three 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 Cloudflare’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 Cloudflare’s whale trades within a strike price range from $75.0 to $150.0 in the last 30 days.

Cloudflare Option Volume And Open Interest Over 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.

Following our analysis of the options activities associated with Cloudflare, we pivot to a closer look at the company’s own performance.

Current Position of Cloudflare

• With a trading volume of 1,210,488, the price of NET is down by -5.14%, reaching $106.77.
• Current RSI values indicate that the stock is is currently neutral between overbought and oversold.
• Next earnings report is scheduled for 21 days from now.

What Analysts Are Saying About Cloudflare

Over the past month, 5 industry analysts have shared their insights on this stock, proposing an average target price of $149.6.

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* An analyst from UBS persists with their Neutral rating on Cloudflare, maintaining a target price of $135.
* Consistent in their evaluation, an analyst from Piper Sandler keeps a Neutral rating on Cloudflare with a target price of $112.
* Showing optimism, an analyst from B of A Securities upgrades its rating to Buy with a revised price target of $160.
* Consistent in their evaluation, an analyst from Goldman Sachs keeps a Buy rating on Cloudflare with a target price of $161.
* An analyst from Citizens Capital Markets downgraded its action to Market Outperform with a price target of $180.

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.

If you want to stay updated on the latest options trades for Cloudflare, Benzinga Pro gives you real-time options trades alerts.