Bullish Sentiment: Large Options Trades on DoorDash Ahead of Earnings Release

DoorDash has experienced unusual options activity with 9 trades, 33% of which were bullish and 33% bearish. The largest trades were a PUT SWEEP with a total trade price of $650.2K and a PUT TRADE with a total trade price of $111.0K. Volume and open interest trends suggest big players are eyeing a price window from $210.0 to $280.0 for DoorDash during the past quarter.

Unusual options activity has recently emerged in the market for DoorDash (DASH), suggesting significant interest from both bullish and bearish traders. An analysis of recent options trades reveals 9 unusual trades, with 33% of traders showing bullish tendencies and 33% exhibiting bearish tendencies [1]. The largest trades observed were a PUT SWEEP valued at $650.2K and a PUT TRADE valued at $111.0K.

The volume and open interest trends indicate that major players are focusing on a price window ranging from $210.0 to $280.0 for DoorDash during the past quarter [1]. This data highlights the liquidity and investor interest in the company's options at specified strike prices.

Analysts have provided varying insights on DoorDash's performance. Over the past month, 5 industry analysts have proposed an average target price of $291.8, with some maintaining their bullish stance while others remain neutral or slightly bearish [1]. For instance, an analyst from Evercore ISI Group maintains an Outperform rating with a target price of $360, while an analyst from Stifel holds a Hold rating with a target price of $214 [1].

Additionally, DoorDash's retail sentiment has improved to 'bullish' from 'neutral' territory, as reported by Stocktwits, ahead of its second-quarter earnings [2]. Bank of America has raised its price target on DoorDash to $285, citing strong growth data points for June and July [2]. The company is expected to post second-quarter net revenue of $3.16 billion, a 24.6% year-over-year increase, and earnings per share (EPS) are estimated to be $1.07 [2].

While options trading involves higher risk and potential profit, investors should be cautious and well-informed. Understanding the underlying sentiment and trends can help in making more informed investment decisions.

References:
[1] https://www.benzinga.com/insights/options/25/08/46999278/doordash-unusual-options-activity
[2] https://stocktwits.com/news-articles/markets/equity/door-dash-serves-up-bullish-vibes-pre-earnings-as-retail-sentiment-turns-positive/chrS3aBRd5n