Investors Take Bearish Stance on Kenvue (KVUE): What Retail Traders Should Know
Investors with significant amounts of money to spend have recently taken a bearish stance on Kenvue (KVUE), a consumer health company. This development has caught the attention of retail traders, as it often indicates that someone may have insider knowledge about an impending event or market movement.
Benzinga’s options scanner detected 12 options trades for Kenvue, which is highly unusual. These trades were split between 25% bullish and 75% bearish sentiment. Among the options discovered were 1 put, totaling $101,100, and 11 calls, totaling $1,174,864.
Upon analyzing the volume and open interest of these contracts, it appears that institutional investors or wealthy individuals have been eyeing a price range of $20.0 to $25.0 for Kenvue over the past quarter. This information provides crucial insights into stock research, allowing traders to gauge liquidity and interest levels for Kenvue’s options at specific strike prices.
The largest options trades for Kenvue in the past month include the following:
1. Symbol: KVUE
Type: CALL
Trade Type: TRADE
Sentiment: BULLISH
Expiration Date: 02/16/24
Strike Price: $22.50
Total Trade Price: $651.2K
Open Interest: 96.7K
Volume: 9.4K
2. Symbol: KVUE
Type: PUT
Trade Type: SWEEP
Sentiment: BULLISH
Expiration Date: 02/16/24
Strike Price: $20.00
Total Trade Price: $101.0K
Open Interest: 17.4K
Volume: 1.0K
3. Symbol: KVUE
Type: CALL
Trade Type: SWEEP
Sentiment: BULLISH
Expiration Date: 02/16/24
Strike Price: $25.00
Total Trade Price: $98.9K
Open Interest: 59.1K
Volume: 9.3K
4. Symbol: KVUE
Type: CALL
Trade Type: SWEEP
Sentiment: BEARISH
Expiration Date: 02/16/24
Strike Price: $25.00
Total Trade Price: $91.2K
Open Interest: 59.1K
Volume: 9.3K
5. Symbol: KVUE
Type: CALL
Trade Type: SWEEP
Sentiment: BEARISH
Expiration Date: 02/16/24
Strike Price: $25.00
Total Trade Price: $72.4K
Open Interest: 59.1K
Volume: 4.1K
Kenvue is the largest pure-play consumer health company in the world, generating $15 billion in annual revenue. It was formerly a part of Johnson & Johnson’s consumer segment but spun off and went public in May 2023. The company operates in various segments within consumer health, including cough, cold and allergy care, pain management, face and body care, oral care, and women’s health. Kenvue’s portfolio comprises well-known brands such as Tylenol, Listerine, Johnson’s, Aveeno, and Neutrogena.
Currently, Kenvue is trading with a volume of 6,764,494, and its price is down by -0.34%, now at $20.55. RSI readings suggest that the stock may be approaching overbought levels, and its anticipated earnings release is in 65 days.
According to market experts, the consensus target price for Kenvue is $20.0. Piper Sandler recently downgraded its action to Neutral with a price target of $20.
Options are considered riskier assets compared to trading the stock directly, but they also offer higher profit potential. Serious options traders manage this risk by staying informed, scaling in and out of trades, following multiple indicators, and closely monitoring the markets.
To stay updated on the latest options trades for Kenvue, traders can utilize Benzinga Pro, which provides real-time options trade alerts.
Overall, the bearish stance taken by investors on Kenvue has raised eyebrows among retail traders. It will be interesting to see how these options trades play out and whether they reflect an upcoming event or market movement.
