Investors with substantial capital appear to be adopting a bullish outlook on Spotify Technology (NASDAQ: SPOT), indicating heightened confidence in the company’s future prospects.
This development is noteworthy for retail traders seeking insights into market movements.
Today, as we analyzed trades recorded in publicly accessible options history, maintained by Benzinga, we observed a remarkable uptick in activity surrounding Spotify’s options.
While the identities of these investors—be they institutions or affluent individual traders—remain unclear, such notable activity in SPOT often suggests that informed players anticipate significant market events are on the horizon.
So, what exactly did these savvy investors do?
This morning, Benzinga‘s options scanner detected a striking 25 uncommon options trades specifically linked to Spotify Technology.
This level of trading activity is far from typical.
The sentiment among these high-net-worth traders reveals a divide: 68% are bullish on Spotify, while only 16% lean bearish.
From our analysis of the unique options trades uncovered, 5 were puts totaling $163,255, against a more substantial 20 calls aggregating $809,694, showcasing a clear preference for bullish positions.
Expected Price Movements
Considering the volume and open interest associated with these contracts, it has become evident that institutional players, often referred to as “whales,” have been eyeing a price trajectory between $180.00 and $720.00 for Spotify Technology in recent months.
Insights into Volume & Open Interest
Monitoring volume and open interest provides a valuable lens through which to conduct thorough due diligence on a stock.
This data can guide traders in evaluating the liquidity and interest surrounding Spotify Technology’s options at various strike prices.
The table below illustrates the fluctuation in both volume and open interest for calls and puts related to Spotify Technology’s whale activity within the defined strike price range of $180.00 to $720.00 over the past 30 days.
Spotify Technology Call and Put Volume: 30-Day Overview
Biggest Options Spotted:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
About Spotify Technology
Spotify stands as the premier provider of global music streaming services, boasting over 600 million monthly active users and 250 million dedicated paying subscribers—essentially the backbone of its premium segment. The vast majority of Spotify’s revenue, and almost all its gross profit, derives from these subscribers who pay a monthly fee to access an extensive music library that features an array of the most popular recordings, including tracks from major record labels. Additionally, Spotify offers distinct audiobook subscriptions and integrates podcast content within its standard music app—though podcast content is generally non-exclusive and accessible for free on various other platforms. Users on ad-supported plans enjoy a comparable music catalog but lack the ability to customize their listening experience.
Spotify Technology’s Current Market Status
- With a transaction volume of 1,737,074 shares, SPOT is currently trading up 1.71%, priced at $471.76.
- The RSI indicators suggest that the underlying stock may be reaching overbought territory.
- Anticipation builds as earnings are expected to be released in 76 days.
Professional Analyst Ratings for Spotify Technology
In the past month, five professional analysts have weighed in on the stock, establishing an average price target of $500.00.
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* A Morgan Stanley analyst maintains an Overweight rating with a target price of $460.
* A B of A Securities analyst upholds a Buy rating with a target price of $515.
* A Keybanc analyst continues with an Overweight rating and a target price of $520.
* A JP Morgan analyst reaffirms their Overweight rating with a target price of $530.
* An analyst from Barclays has decided to maintain their Overweight rating on Spotify Technology, currently sitting at a price target of $475.
Options trading inherently carries higher risks coupled with potential rewards. Savvy traders navigate these risks through ongoing education, strategic adaptability, continuous monitoring of various indicators, and vigilant tracking of market movements. Stay updated on the latest options activity related to Spotify Technology with real-time alerts from Benzinga Pro.
What factors are contributing to the bullish sentiment among investors in Spotify Technology’s options market?
**Interview with Market Analyst on Spotify Technology’s Bullish Options Activity**
**Host:** Welcome to our market insights segment. Today, we have financial analyst Jane Doe with us to discuss the latest trends surrounding Spotify Technology’s options activity. Jane, thank you for joining us.
**Jane:** Thank you for having me!
**Host:** Let’s dive right in. We’ve seen an increase in bullish sentiment among investors regarding Spotify. What can you tell us about that?
**Jane:** Absolutely! Recent data shows that a significant portion of high-net-worth traders—around 68%—are bullish on Spotify. This optimism is reflected in the volume of options trading, with 20 call options trades totaling over $809,000 compared to just 5 put trades valued at $163,000. This indicates a strong preference for bullish positions as they anticipate upward price movement.
**Host:** Interesting. What do these bullish trades suggest about the market’s expectations for Spotify?
**Jane:** Well, the volume and open interest metrics are quite revealing. The notable activity in Spotify’s options suggests that institutional investors, often termed “whales,” are looking at a price range between $180 and $720 in the coming months. This range is significant, as it reflects both their confidence in the company’s future outlook and their readiness to leverage substantial capital into these options.
**Host:** And how does this influence retail traders?
**Jane:** Retail traders should pay close attention to these signals. The heightened activity indicates that there could be substantial shifts in Spotify’s stock price, driven by either market news or the company’s performance. For traders relying on volume and open interest as indicators, this trend suggests increased liquidity and potential opportunities or risks in trading Spotify.
**Host:** Could you provide an overview of some of the most notable trades that have occurred around Spotify?
**Jane:** Certainly! For instance, there’s a bullish call trade set to expire on January 15, 2027, with a strike price of $720 that had an ask of $57.80. Although the volume is low at just 2, the total trade price reached about $119,500, signaling that someone is placing a significant bet on Spotify’s future performance at that upper strike price. Similarly, there are several trades approaching expiration in late 2024 and 2025, all reflecting positive sentiment.
**Host:** That’s really insightful, Jane. what do you think should be the strategy for those interested in investing in Spotify right now?
**Jane:** I would advise potential investors to stay informed about market trends and company developments. Monitoring the options market can provide clues about where large investors are placing their bets. For retail investors, consideration of both the bullish sentiment reflected in options trading and the fundamental aspects of Spotify—such as its user growth and revenue streams—will be crucial in making well-rounded investment decisions.
**Host:** Thank you, Jane, for your valuable insights into Spotify Technology’s options activity and what it means for investors!
**Jane:** Thank you for having me!