Wealth Alliance Advisory Group LLC Acquires Stake in BlackRock, Inc.
Oct 20, 2024
Examining the Options Market Dynamics of BlackRock (NYSE:BLK)
Large investors, often referred to as "whales," have adopted a notably bearish outlook towards BlackRock. Recent analysis of the options market for BlackRock (BLK) has revealed a total of 14 trades.
Upon examining these trades in detail, it is noted that 42% of investors entered trades with a bullish perspective, while the remaining 57% took a bearish stance.
Out of the total trades observed, 3 were puts, amounting to $298,011, whereas 11 were calls, aggregating to $433,330.
Projected Price Targets
By analyzing the volume and open interest associated with these options, it appears that major investors are targeting a price range for BlackRock between $800.00 and $1055.00 over the last quarter.
Volume & Open Interest Analysis
In the current trading atmosphere, BlackRock's average open interest for options is recorded at 58.7, with the total volume at 210.00. The following chart illustrates the trends in both call and put option volumes and open interest for significant trades in BlackRock, focusing on the strike price range from $800.00 to $1055.00 over the past 30 days.
BlackRock Call and Put Volume: 30-Day Insights
Recent analysis highlights several noteworthy options transactions:
| Symbol | PUT/CALL | Trade Type | Sentiment | Exp. Date | Ask Price | Bid Price | Trade Price | Strike Price | Total Trade Price | Open Interest | Volume |
|---|---|---|---|---|---|---|---|---|---|---|---|
| BLK | PUT | SWEEP | BEARISH | 03/21/25 | $50.6 | $46.7 | $47.7 | $1000.00 | $186.0K | 37 | 39 |
| BLK | CALL | SWEEP | BEARISH | 01/15/27 | $279.8 | $276.3 | $276.88 | $820.00 | $110.7K | 0 | 5 |
| BLK | PUT | SWEEP | BEARISH | 03/21/25 | $57.1 | $56.5 | $57.1 | $1020.00 | $68.5K | 28 | 0 |
| BLK | CALL | SWEEP | BEARISH | 12/20/24 | $57.0 | $53.0 | $53.0 | $980.00 | $53.0K | 202 | 20 |
| BLK | CALL | TRADE | BEARISH | 12/20/24 | $96.0 | $90.1 | $90.1 | $950.00 | $45.0K | 90 | 10 |
Overview of BlackRock
BlackRock stands out as the largest asset management firm globally, overseeing $11.475 trillion in assets as of September 2024. Their asset mix is quite diverse, with equity strategies representing 55% of managed assets, 26% in fixed income, 9% in multi-asset classes, 7% in money market funds, and 3% in alternatives. A significant portion, roughly two-thirds of long-term assets under management (AUM), revolves around passive strategies, with the company's ETF platform leading in market share, both domestically and internationally. Approximately 80% of AUM is attributed to institutional clients, emphasizing a strong focus on this segment. Furthermore, BlackRock services clients in over 100 countries, with more than one-third of managed assets sourced from investors outside the US and Canada.
With an analysis of BlackRock's options trading in mind, let’s shift attention to the company's present situation and market performance.
Current Market Status of BlackRock
- Currently, BlackRock trades at $1012.03, reflecting a decline of -0.23% with a total trading volume of 587,223.
- The Relative Strength Index (RSI) suggests that the stock may be nearing overbought levels.
- BlackRock's next earnings report is anticipated in 65 days.
Analysts' Insights on BlackRock
In recent weeks, five industry analysts have published their evaluations on BlackRock, which led to an average target price recommendation of $1044.2.
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Analyst reviews include:
- A JP Morgan analyst maintains a Neutral rating, setting a target price of $914.
- TD Cowen analysts have given a Buy rating with a price target of $1077.
- Evercore ISI Group has adopted an Outperform rating, targeting $1040.
- Banks from Wells Fargo continue with an Overweight rating and a target of $1070.
- Barclays also holds an Overweight rating, eyeing a price target of $1120.
It’s important to note that options trading can pose higher risks than traditional stock trading; however, they offer the potential for greater returns. Experienced options traders mitigate these risks through continuous education, strategic trade scaling, utilizing multiple indicators, and closely monitoring the markets.
To keep updated on the latest options activities related to BlackRock, various services provide real-time alerts for options trades.
BlackRock, Options, Trading