Whales Are Taking a Bearish Stance on Cloudflare (NYSE: NET)

Major investors are showing a bearish sentiment towards Cloudflare (NET), which could signal a significant change in the market. Recent tracking of public options reveals a notable increase in bearish activities that stakeholders should pay attention to. Although the identities of these investors remain unknown, the impact of their movements cannot be ignored.

Our analysis based on real-time data highlighted 12 remarkable options activities for Cloudflare through an options scanner. This unusual level of activity often indicates that something substantial is on the horizon.

Investor Mood

The prevailing sentiment among prominent investors is mixed, with 33% forecasting a bullish market and 50% opting for a bearish stance. Out of the numerous options traded, 2 were puts worth a total of $141,144, while the 10 calls amounted to $469,887, hinting at a cautious outlook.

Predicted Price Range

After analyzing recent trading volumes and Open Interest for options, it appears that market movers are concentrating on a potential price range between $45.00 and $135.00 for Cloudflare over the last three months.

Volume & Open Interest Trends

Understanding volume and open interest trends is critical for options trading, as these metrics provide insights into how much interest and liquidity exists at different strike prices. The upcoming data will showcase the variations in volume and open interest related to Cloudflare's significant trades over the last 30 days, covering strike prices from $45.00 to $135.00.

Options Trading Overview

Here is a snapshot of the largest options trades observed for Cloudflare:

Symbol	PUT/CALL	Trade Type	Sentiment	Exp. Date	Ask	Bid	Price	Strike Price	Total Trade Price	Open Interest	Volume
NET	PUT	SWEEP	BULLISH	02/07/25	$5.25	$5.20	$5.25	$112.00	$113.80K	0	217
NET	CALL	TRADE	BEARISH	01/16/26	$22.25	$21.95	$21.95	$120.00	$89.90K	779	51
NET	CALL	TRADE	BEARISH	02/21/25	$10.85	$10.60	$10.69	$110.00	$53.40K	3.1K	61
NET	CALL	SWEEP	BULLISH	01/31/25	$5.10	$5.05	$5.10	$114.00	$50.90K	14	101
NET	CALL	TRADE	BEARISH	01/15/27	$34.65	$33.95	$33.96	$115.00	$50.90K	99	15

About Cloudflare

Cloudflare is a tech company headquartered in San Francisco, California. It specializes in enhancing security and web performance through its unique distributed content delivery network (CDN). The company’s innovative edge computing platform, known as Workers, enables clients to deploy and execute code while eliminating the need for server maintenance.

Cloudflare's Current Market Insights

• The trading volume for Cloudflare has reached 2,380,874, with its price showing a 4.43% increase, currently priced at $112.44.
• The RSI indicators are suggesting that the stock may soon be overbought.
• An earnings announcement is anticipated in 35 days, which could influence market behavior significantly.

Analyst Opinions on Cloudflare

In the past month, four analysts have made assessments regarding Cloudflare, resulting in an average price target of $131.50.

Noteworthy Analyst Recommendations:

A Goldman Sachs analyst has upgraded their rating to Buy with an increased price target of $140. Meanwhile, a Stifel analyst also upgraded their rating to Buy, setting a new target of $136. On the other hand, an analyst from Jefferies has retained their Hold rating with a target of $125, while Mizuho continues to hold a Neutral rating, also targeting a price of $125.

Engaging in options trading comes with its own set of risks and rewards. Savvy traders often manage these risks by continually educating themselves, adjusting their strategies, and closely monitoring market developments. To stay updated on Cloudflare’s options activities, real-time alerts provide essential insights.

options, investors, Cloudflare