Market Whales Bet Big on UPS Options, Warnings for Retail Investors

Investors with significant financial resources have taken a bearish stance on United Parcel Service (UPS), with a split sentiment of 30% bullish and 55% bearish. The big-money traders are eyeing a price window from $70 to $160 for UPS during the past quarter. The mean open interest for UPS options trades is 2236.12, with a total volume of 6,229.00.

Investors with significant financial resources have taken a bearish stance on United Parcel Service (UPS), according to recent options trading data. The sentiment among these big-money traders is split, with 30% bullish and 55% bearish. This shift in investor sentiment comes as UPS faces potential challenges and opportunities in the coming months.

The trading activity indicates that these investors are closely monitoring UPS's stock price, with a particular focus on the range of $70 to $160. The mean open interest for UPS options trades is 2236.12, with a total volume of 6,229.00, suggesting a high level of interest and liquidity in the options market.

The bearish stance is likely driven by several factors, including the company's decision to reduce Amazon package volume by over 50% by mid-2026. This move is part of UPS's strategy to build healthier margins by targeting small and medium-sized businesses (SMBs) and reducing its reliance on lower-margin enterprise clients. The recent partnership with American Express, which offers exclusive shipping discounts and service offers to SMBs, is a significant step in this direction.

However, investors should remain cautious about potential risks, such as tariff changes and softer global demand, which could offset the gains from the SMB focus. The company's narrative projects $94.5 billion in revenue and $7.1 billion in earnings by 2028, but this requires 1.5% yearly revenue growth and a $1.4 billion increase in earnings from the current $5.7 billion.

In the meantime, the company's stock price is currently neutral between overbought and oversold conditions, with the next earnings release expected in 41 days. Analysts have provided mixed ratings, with one analyst from B of A Securities revising its rating downward to Underperform, adjusting the price target to $83, while another analyst maintains a Neutral rating with a target price of $91.

Investors should stay informed about the latest options trades for UPS and continue to monitor the company's performance and the broader market conditions that may impact its stock price.