Prominent investors have recently displayed a notable level of engagement with Arista Networks, as evidenced by unusual options trading patterns. While their identities remain undisclosed, such significant activity often foreshadows notable shifts in the stock's trajectory.
Analysis of public options data by Benzinga revealed 24 extraordinary options activities for Arista Networks, indicating an atypical level of market interest. The sentiment among these major investors appears varied, with a minority exhibiting bullish tendencies (16%) and a majority leaning bearish (54%). Specifically, five put options worth $188,958 and 19 call options totaling $1,075,440 were observed.
These substantial option trades suggest that key investors are projecting a price range for Arista Networks between $100.0 and $160.0 over the next three months. The average open interest for Arista Networks options currently stands at 348.75, with a total trading volume reaching 1,213.00. This data, alongside a historical overview of call and put option volumes and open interest within the $100.0 to $160.0 strike price corridor over the past 30 days, provides valuable insights into potential future price dynamics.
Arista Networks, a leading provider of Ethernet switches and software for data centers, has consistently expanded its market presence since its inception in 2004. The company's innovative Extensible Operating System (EOS), which unifies operation across all its devices, is a key product. With major clients like Microsoft and Meta Platforms, and approximately three-quarters of its sales originating from North America, Arista Networks is a significant player in the networking equipment sector. The stock is currently trading at $126.28, having experienced a -2.81% decline in trading volume, and its RSI indicators suggest it may be approaching overbought territory. With earnings announcements anticipated in just over a month, analysts from firms like Morgan Stanley and Piper Sandler have set an average price target of $159, maintaining an 'Overweight' rating, reflecting confidence in the company's long-term prospects despite the recent mixed options sentiment. While options trading carries inherent risks compared to direct stock investments, it offers higher profit potential for informed traders who diligently manage risk, utilize multiple indicators, and closely monitor market trends.