ServiceNow closed at $109.16, gaining 2.97%.
Large options trades showed a split in positioning, with a $3.48 million put sale on the January 19, 2029 $100.00 strike acting as the biggest displayed trade, while a $2.80 million long put purchase on the January 21, 2028 $94.00 strike added a defensive tone. Overall, the flow leaned mildly bullish but cautious, with investors comfortable selling long-dated downside premium while still holding some convex protection.
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Options Indicators
ServiceNow has an implied volatility of 53.51%, and with an IV percentile of 36.25%, current volatility sits in a neutral historical range rather than an extreme one. Combined with the IV/HV ratio of 0.45, options do not appear aggressively priced relative to the stock’s realized volatility backdrop, suggesting premiums are not in an elevated state. The Call/Put volume ratio is 1.16.
Large Trades
A put sale worth $3.48 million was the largest displayed trade, with 1,500 contracts sold on the January 19, 2029 $100.00 put. With NOW referenced at $108.70, this strike sits out of the money, making the trade a moderately bullish stance that expresses willingness to accumulate shares at a lower effective entry point while collecting premium upfront. Strategically, selling this long-dated out-of-the-money put suggests confidence that the stock can remain above $100.00 over time, or at least that downside risk to that level is viewed as manageable.
A put purchase worth $2.80 million was the other major trade, consisting of 2,000 contracts bought on the January 21, 2028 $94.00 put. Relative to the $108.70 spot reference, this strike is also out of the money, so the buyer is positioning for a meaningful downside move or seeking longer-dated portfolio protection below current levels. As a single-leg bearish trade, it reflects demand for convex downside exposure, with the buyer paying premium for protection or a directional bet that NOW could weaken materially before expiration.
Overall, the large-trade flow leans mildly bullish, but with a cautious tone rather than outright optimism. The biggest trade was premium-selling on a long-dated out-of-the-money put, which points to confidence in support and a willingness to own weakness, while the notable long put purchase shows that some participants still want downside protection or see room for a bearish move. Taken together, the block activity suggests a guarded bullish bias: investors appear more comfortable monetizing downside fear than aggressively chasing upside, while still acknowledging medium- to long-term downside risk.
Strategy Reference
For a low assignment probability, a put seller could look further out of the money than the traded $94.00 strike, using a shorter-dated expiration to reduce tail exposure; alternatively, a put credit spread on the $100.00/$94.00 area limits margin while still capturing long-dated premium.
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