Bearish Options Activity Signals Concerns for Airbnb (ABNB)

Bearish sentiment dominates Airbnb's options, with 50% of trades reflecting negative expectations. This trend and price target volatility could impact investor confidence significantly.

Date: 21-03-2025

AI Rating: 4

Options Activity Analysis
Airbnb is facing noteworthy bearish sentiment, as indicated by the recent options trading data. Out of 10 trades detected, 50% have been bearish, which suggests that institutional investors are anticipating a downturn in the stock's performance. Eight put options were traded, amounting to $890,353 in total, compared to only two call options worth $434,592. This disparity highlights significant selling pressure and could signal a more negative outlook for the stock moving forward.

**Projected Price Targets**
The price targets observed are within the $90.0 to $135.0 range for Airbnb over the past quarter. The average target price suggested by analysts varies widely, from a hold rating target of $112 by Truist Securities to a buy rating target of $200 from Tigress Financial, and another buy with a target of $185 from Jefferies. While the higher targets may indicate potential upside, the bearish options activity complicates this analysis, suggesting that volatility may affect investor confidence.

**Volume and Open Interest**
Airbnb’s current options market showcases a mean open interest of 593.5 with a total trading volume of 5,402.00 contracts. A significant volume relative to open interest demonstrates active engagement by traders, primarily focused on bearish positions. The presence of a neutral sentiment in some trades alongside bearish puts introduces further complexity to the outlook on the stock.

**Stock Performance**
Trading around $126.17, the stock is barely up by 0.02% but signaling potential weakness with RSI readings suggesting it may be oversold. With earnings anticipated in 47 days, the timing of these bearish sentiments could coincide with the earnings release, potentially prompting market reactions based on performance expectations. Overall, the current options data and analyst projections expose Airbnb to substantial risks in the short term, as the discrepancy between the bullish and bearish indicators raises questions about sustainable growth.

Stocks: ABNB