Spotlight on Microchip Technology: Analyzing the Surge in Options Activity

Investors with a lot of money to spend have taken a bearish stance on Microchip Technology MCHP.

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 MCHP, 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 Microchip Technology.

This isn't normal.

The overall sentiment of these big-money traders is split between 11% bullish and 66%, bearish.

Out of all of the special options we uncovered, 6 are puts, for a total amount of $658,055, and 3 are calls, for a total amount of $118,910.

Expected Price Movements

Taking into account the Volume and Open Interest on these contracts, it appears that whales have been targeting a price range from $50.0 to $65.0 for Microchip Technology over the last 3 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 Microchip Technology's options at certain strike prices. Below, we present a snapshot of the trends in volume and open interest for calls and puts across Microchip Technology's significant trades, within a strike price range of $50.0 to $65.0, over the past month.

Microchip Technology Option Volume And Open Interest Over Last 30 Days

Significant Options Trades Detected:

About Microchip Technology

Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

Current Position of Microchip Technology

• Currently trading with a volume of 3,534,568, the MCHP's price is up by 0.79%, now at $52.31.
• RSI readings suggest the stock is currently is currently neutral between overbought and oversold.
• Anticipated earnings release is in 53 days.

Professional Analyst Ratings for Microchip Technology

Over the past month, 4 industry analysts have shared their insights on this stock, proposing an average target price of $68.75.

Turn $1000 into $1270 in just 20 days?

20-year pro options trader reveals his one-line chart technique that shows when to buy and sell. Copy his trades, which have had averaged a 27% profit every 20 days. Click here for access. * Maintaining their stance, an analyst from Mizuho continues to hold a Outperform rating for Microchip Technology, targeting a price of $68. * Consistent in their evaluation, an analyst from Evercore ISI Group keeps a Outperform rating on Microchip Technology with a target price of $71. * Consistent in their evaluation, an analyst from Needham keeps a Buy rating on Microchip Technology with a target price of $66. * Maintaining their stance, an analyst from Rosenblatt continues to hold a Buy rating for Microchip Technology, targeting a price of $70.

Trading options involves greater risks but also offers the potential for higher profits. Savvy traders mitigate these risks through ongoing education, strategic trade adjustments, utilizing various indicators, and staying attuned to market dynamics. Keep up with the latest options trades for Microchip Technology with Benzinga Pro for real-time alerts.