A Closer Look at Datadog's Options Market Dynamics

Investors with a lot of money to spend have taken a bearish stance on Datadog (NASDAQ:DDOG).

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 DDOG, 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 13 uncommon options trades for Datadog.

This isn't normal.

The overall sentiment of these big-money traders is split between 30% bullish and 53%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $767,183, and 7 are calls, for a total amount of $311,354.

Projected Price Targets

Based on the trading activity, it appears that the significant investors are aiming for a price territory stretching from $85.0 to $150.0 for Datadog over the recent three months.

Volume & Open Interest Development

In today's trading context, the average open interest for options of Datadog stands at 403.9, with a total volume reaching 5,458.00. The accompanying chart delineates the progression of both call and put option volume and open interest for high-value trades in Datadog, situated within the strike price corridor from $85.0 to $150.0, throughout the last 30 days.

Datadog Option Activity Analysis: Last 30 Days

Largest Options Trades Observed:

Symbol PUT/CALL Trade Type Sentiment Exp. Date Ask Bid Price Strike Price Total Trade Price Open Interest Volume
DDOG PUT TRADE BULLISH 06/28/24 $1.98 $1.27 $1.35 $106.00 $567.0K 0 4.2K
DDOG CALL SWEEP BEARISH 10/18/24 $5.0 $4.9 $4.9 $140.00 $73.9K 583 11
DDOG CALL SWEEP BEARISH 10/18/24 $11.7 $11.45 $11.5 $120.00 $64.4K 121 84
DDOG PUT SWEEP BEARISH 06/07/24 $0.94 $0.94 $0.94 $109.00 $60.1K 8 639
DDOG PUT SWEEP BULLISH 05/16/25 $6.1 $6.0 $6.0 $85.00 $57.0K 33 95

About Datadog

Datadog is a cloud-native company that focuses on analyzing machine data. The firm's product portfolio, delivered via software as a service, allows a client to monitor and analyze its entire IT infrastructure. Datadog's platform can ingest and analyze large amounts of machine-generated data in real time, allowing clients to utilize it for a variety of applications throughout their businesses.

In light of the recent options history for Datadog, it's now appropriate to focus on the company itself. We aim to explore its current performance.

Present Market Standing of Datadog Currently trading with a volume of 1,404,408, the DDOG's price is down by -1.47%, now at $116.53. RSI readings suggest the stock is currently is currently neutral between overbought and oversold. Anticipated earnings release is in 84 days. What The Experts Say On Datadog

A total of 5 professional analysts have given their take on this stock in the last 30 days, setting an average price target of $148.6.

An analyst from Rosenblatt persists with their Buy rating on Datadog, maintaining a target price of $146. Reflecting concerns, an analyst from Cantor Fitzgerald lowers its rating to Overweight with a new price target of $150. In a positive move, an analyst from Wells Fargo has upgraded their rating to Overweight and adjusted the price target to $150. Consistent in their evaluation, an analyst from Barclays keeps a Overweight rating on Datadog with a target price of $145. Maintaining their stance, an analyst from Stifel continues to hold a Buy rating for Datadog, targeting a price of $152.

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 Datadog options trades with real-time alerts from Benzinga Pro.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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