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Benzinga Insights

Cloudflare Whale Trades Spotted

Someone with a lot of money to spend has taken a bearish stance on Cloudflare (NYSE:NET).

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 NET, 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 11 uncommon options trades for Cloudflare.

This isn't normal.

The overall sentiment of these big-money traders is split between 45% bullish and 54%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $1,336,656, and 5 are calls, for a total amount of $877,230.

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 $40.0 to $75.0 for Cloudflare over the last 3 months.

Volume & Open Interest Development

In terms of liquidity and interest, the mean open interest for Cloudflare options trades today is 1133.5 with a total volume of 2,013.00.

In the following chart, we are able to follow the development of volume and open interest of call and put options for Cloudflare's big money trades within a strike price range of $40.0 to $75.0 over the last 30 days.

Cloudflare 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
NET PUT TRADE BULLISH 06/16/23 $50.00 $1.1M 68 1.0K
NET CALL TRADE BEARISH 11/18/22 $40.00 $356.4K 258 220
NET CALL TRADE BEARISH 11/04/22 $40.00 $191.8K 245 234
NET CALL TRADE BEARISH 11/04/22 $40.00 $172.1K 245 110
NET CALL TRADE NEUTRAL 11/18/22 $50.00 $92.7K 949 8

Where Is Cloudflare Standing Right Now?

  • With a volume of 2,275,732, the price of NET is up 3.51% at $53.44.
  • RSI indicators hint that the underlying stock is currently neutral between overbought and oversold.
  • Next earnings are expected to be released in 14 days.

What The Experts Say On Cloudflare:

  • Mizuho has decided to maintain their Neutral rating on Cloudflare, which currently sits at a price target of $65.
  • MoffettNathanson downgraded its action to Buy with a price target of $114
  • Wells Fargo upgraded its action to Overweight with a price target of $65
  • Baird downgraded its action to Outperform with a price target of $80

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.

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