Dow Chemical Options Activity Suggests Bullish Stance

Big-money investors have taken a bullish stance on Dow Chemical, with 10 uncommon options trades spotted by Benzinga's options scanner. The overall sentiment is split between 60% bullish and 30% bearish, with 6 puts and 4 calls. Analyzing volume and open interest, the big players have been eyeing a price window from $22.5 to $40.0 for Dow during the past quarter.

Big-money investors have taken a notable bullish stance on Dow Chemical, with 10 uncommon options trades recently detected by Benzinga's options scanner. The overall sentiment among these traders is split between 60% bullish and 30% bearish, with 6 puts and 4 calls [1]. The trades suggest that the big players are eyeing a price window from $22.5 to $40.0 for Dow during the past quarter [1].

The volume and open interest data for these options contracts indicate significant liquidity and interest in Dow's options for the specified strike price range. This unusual activity could signal a shift in market sentiment or anticipation of upcoming events [1].

Dow Chemical, a diversified global chemicals producer, is currently trading at $23.6, up by 1.55% from the previous day. The Relative Strength Index (RSI) readings suggest the stock may be approaching oversold levels, indicating potential buying opportunities [1]. The company is expected to release its earnings in 65 days, which could provide further insights into its financial health and future prospects.

Expert opinions on Dow vary, with an average target price of $26.0. Analysts from UBS, RBC Capital, Evercore ISI Group, Citigroup, and UBS maintain a mix of Neutral, Sector Perform, and In-Line ratings, with target prices ranging from $23 to $32 [1].

The recent earnings call for Dow Inc. (DOW) revealed a larger-than-expected loss and a decline in revenue for the second quarter of 2025. The company reported an earnings per share (EPS) of -$0.42, significantly missing the forecast of -$0.16. Revenue also fell short of expectations, coming in at $10.1 billion compared to the anticipated $10.24 billion. Following the announcement, Dow's stock price dropped 16% in pre-market trading, reflecting investor concerns over the company’s performance [2].

Dow's second-quarter performance highlighted challenges as the company navigates a difficult market environment. The chemical industry is facing headwinds, with global GDP forecasts revised downward and domestic demand for packaging remaining stable while export markets slow. Dow expects to deliver $400 million in cost savings this year and projects Q3 EBITDA to improve to approximately $800 million [2].

Analyst consensus from InvestingPro suggests mixed sentiment, with price targets ranging from $20 to $45 per share, and the company’s Financial Health Score currently stands at "FAIR" with particular strength in relative value metrics [2].

References:
[1] https://www.benzinga.com/insights/options/25/08/47220473/what-the-options-market-tells-us-about-dow
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-dow-inc-q2-2025-sees-stock-drop-amid-earnings-miss-93CH-4198766