Charles Schwab Options Trading: A Deep Dive into Market Sentiment
Investors with a lot of money to spend have taken a bearish stance on Charles Schwab (NYSE:SCHW).
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 SCHW, 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 14 uncommon options trades for Charles Schwab.
This isn't normal.
The overall sentiment of these big-money traders is split between 28% bullish and 50%, bearish.
Out of all of the special options we uncovered, 12 are puts, for a total amount of $2,136,296, and 2 are calls, for a total amount of $61,750.
Expected Price Movements
After evaluating the trading volumes and Open Interest, it's evident that the major market movers are focusing on a price band between $45.0 and $80.0 for Charles Schwab, 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 Charles Schwab's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Charles Schwab's significant trades, within a strike price range of $45.0 to $80.0, over the past month.
Charles Schwab Option Activity Analysis: Last 30 Days
Significant Options Trades Detected:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask | Bid | Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| SCHW | PUT | SWEEP | BULLISH | 09/20/24 | $1.2 | $1.16 | $1.17 | $70.00 | $1.5M | 3.6K | 1.9K |
| SCHW | PUT | SWEEP | NEUTRAL | 01/17/25 | $8.35 | $8.05 | $8.2 | $80.00 | $123.0K | 1.2K | 0 |
| SCHW | PUT | TRADE | NEUTRAL | 01/17/25 | $8.45 | $8.0 | $8.19 | $80.00 | $102.3K | 1.2K | 150 |
| SCHW | PUT | SWEEP | BULLISH | 11/15/24 | $4.0 | $3.95 | $3.95 | $75.00 | $76.6K | 264 | 5 |
| SCHW | PUT | SWEEP | BEARISH | 09/20/24 | $1.17 | $1.15 | $1.17 | $70.00 | $58.5K | 3.6K | 1.4K |
About Charles Schwab
Charles Schwab operates in brokerage, wealth management, banking, and asset management. It runs a large network of brick-and-mortar brokerage branch offices and a well-established online investing website, and it has mobile trading capabilities. It also operates a bank and a proprietary asset-management business and offers services to independent investment advisors. Schwab is among the largest firms in the investment business, with over $8 trillion of client assets at the end of December 2023. Nearly all of its revenue is from the United States.
Current Position of Charles Schwab
- With a volume of 3,526,777, the price of SCHW is up 0.38% at $75.67.
- RSI indicators hint that the underlying stock may be approaching overbought.
- Next earnings are expected to be released in 1 days.
Expert Opinions on Charles Schwab
A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $80.4.
- An analyst from Keefe, Bruyette & Woods has decided to maintain their Market Perform rating on Charles Schwab, which currently sits at a price target of $76.
- Maintaining their stance, an analyst from Barclays continues to hold a Equal-Weight rating for Charles Schwab, targeting a price of $77.
- Maintaining their stance, an analyst from Jefferies continues to hold a Buy rating for Charles Schwab, targeting a price of $88.
- Consistent in their evaluation, an analyst from UBS keeps a Buy rating on Charles Schwab with a target price of $90.
- Maintaining their stance, an analyst from Morgan Stanley continues to hold a Equal-Weight rating for Charles Schwab, targeting a price of $71.
Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest Charles Schwab options trades with real-time alerts from Benzinga Pro.