Notable Thursday Option Activity: UPS, NOW, BAX

ServiceNow (NOW) and Baxter International (BAX) both experienced elevated options trading volume today, with NOW's options volume representing 57.5% of its average daily stock volume and BAX's at 53.2%. Notably, NOW saw significant activity in its $960 December 2025 call options, while BAX observed high volume in its $20 September 2025 put options, indicating substantial long-dated directional positioning or hedging interest in these names relative to their typical equity trading.

Analysis

ServiceNow (NOW) and Baxter International (BAX) are both exhibiting unusually high options market activity, indicating significant institutional positioning. For ServiceNow, options volume reached 57.5% of its average daily share volume, with a notable concentration in the long-dated December 2025 $960 strike call options. This activity in far out-of-the-money calls suggests a strong bullish conviction on the company's long-term appreciation potential from a segment of the market. Conversely, Baxter International's options volume constituted 53.2% of its average daily share volume, with a heavy focus on the September 2025 $20 strike put options. The trading of 14,466 contracts in this specific put series, representing approximately 1.4 million underlying shares, points to a substantial bearish bet or a significant hedging operation against a decline in the stock's price over the next year. The divergent nature of these large, long-dated trades highlights contrasting sentiment and strategic positioning in the two equities.

Key Decisions for Investors

• Investors in ServiceNow should consider the heavy volume in long-dated call options as a bullish signal, potentially reflecting institutional confidence in the company's multi-year growth outlook.