Exploring American Express's Recent Option Activities and Trends

Author: Logan Wright Updated: 09-18-2024 11:12 AM

Understanding Recent Options Trading for American Express

Recently, the trading patterns surrounding American Express have revealed a strategic pivot among major financiers. Investors seem to be adopting a notably bearish outlook towards American Express.

Examining the options history for American Express (AXP), we observed a total of 17 noteworthy trades. A breakdown of these trades shows that 41% were initiated by investors with bullish expectations, while 47% were opened with a bearish sentiment.

Insights from Option Volumes and Trades

Among the trades reported, there were 10 put options, which totaled over $561,270, and 7 call options, amounting to approximately $454,865. This distribution suggests a cautious approach from traders, carefully weighing their options based on market signals.

Expected Price Movements

According to the trading activities noted, significant investors appear to be targeting a price range between $195.00 and $275.00 for American Express over the upcoming months. This range demonstrates the investment community's focus on assessing potential price fluctuations and movements.

Analyzing Volume and Open Interest Data

Currently, American Express has an average open interest of approximately 830, with the total volume hitting 866. The accompanying analytics display a comprehensive overview of both call and put option volumes alongside their open interest for substantial investment trades, confined within the strike price range of $195.00 to $275.00 over the last 30 days.

Largest Options Activities Noted

The following table highlights several prominent options trades that were made recently:

Recent Significant Trades

Note: The options activity below illustrates various sentiments regarding trade types and the corresponding positions.

About American Express

American Express operates as a prominent global financial entity, providing a wide range of charge and credit card payment products across numerous countries. It has established a robust and lucrative merchant payment network, segmenting its operations into global consumer services, commercial services, and merchant/network services since 2018.

Current Market Position of American Express

AXP is currently trading at $262.13, reflecting a decline of 1.23% with a volume of 605,608.
The current relative strength index suggests the stock might be nearing overbought conditions.
An upcoming earnings report is on the horizon in about 30 days.

Recent Analyst Evaluations

In the previous month, two analysts have evaluated AXP, resulting in an average target price set at $264.0. Notably, one analyst from B of A Securities adjusted their rating to Neutral, projecting a target of $263. Meanwhile, another from the same firm maintains a Neutral rating with a $265 target price.

While options trading possesses inherent risks compared to traditional stock trading, they offer opportunities for greater profits. Seasoned options traders navigate these risks through diligent education, strategic entry and exit from trades, and utilizing multiple market indicators.

Frequently Asked Questions

What trends do recent options trades indicate for AXP?

Recent trades suggest a bearish sentiment among major investors, with a notable volume of puts compared to calls.

What is the forecasted price range for American Express stock?

Investor activity indicates a targeted price range of $195 to $275 for American Express in the upcoming months.

How do options trades compare between puts and calls for AXP?

The volume analysis shows 10 put trades versus 7 call trades, indicating a more cautious approach from investors.

What is the average target price set by analysts for AXP?

Analysts currently have an average target price for American Express set at $264.0.

Why are options considered riskier assets?

Options trading comes with elevated risk levels due to their leveraged nature compared to traditional stock trading, necessitating greater market awareness.

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