Bearish Sentiment Grows Among Large Options Traders for NET

Bearish market sentiment emerges for Cloudflare (NET) as 76% of recent options trades indicate bearish positions. Analysts maintain mixed views on the stock's future price targets amid looming earnings in 77 days.

Date: 15-05-2025

AI Rating: 5

Options Trading Analysis: A detailed review of recent options trades for Cloudflare (NYSE: NET) shows a notable bearish inclination among traders, with 76% expressing bearish sentiment compared to just 23% bullish. These figures suggest that market participants could be anticipating a decline in the stock's performance in the near term.

Despite this bearish activity, there remains significant interest in Cloudflare's options, with a total trade volume of approximately $1,254,265 for calls and a notably smaller value of $72,031 for puts. This discrepancy indicates that while bearish sentiment is dominant, there are still players looking to capitalize on positive price movements.

Price Targets and Analysts Ratings: Market analysts have been varying in their ratings and price targets for Cloudflare. The current consensus target price is approximately $153.2, with a range extending from $140 to $165. Notably, multiple analysts are maintaining their existing ratings, despite fluctuations in price targets, indicating a cautious yet observant stance towards Cloudflare's market positioning.

Furthermore, trading activity shows that significant options volume has been concentrated around strike prices from $115.0 to $165.0. This suggests that traders are likely speculating on some volatility or potential directional shifts leading up to the earnings announcement expected in 77 days.

Implications for Stock Price: Given the high level of bearish sentiment and the mix of rating adjustments among analysts, investors may need to exercise caution before initiating or increasing positions in Cloudflare. The bearish options data and an upcoming earnings report add layers of uncertainty that are critical to consider. In the context of market strategy, positioning might be best done through protective options plays or interim selling approaches until clearer signals emerge post-earnings.

Stocks: NET