ServiceNow closed at $142.35 with a 7.41% increase.

Despite the sharp rally, options flow revealed a heavily bearish institutional bias. A single block trade dominated activity: a $1.28 million purchase of long-dated puts at the $110.00 strike expiring March 19, 2027. The position is deeply out of the money and reflects a hedge or directional bet on a substantial decline. No comparable bullish block trades appeared, making the overall large-trade tone clearly negative.

>>>Start OPTIONS trading & earn up to SGD 200 in rewards!

Options Indicators

NOW has an implied volatility of 54.92%, and with an IV percentile of 58.17%, current volatility conditions sit in a neutral range rather than at an extreme. The IV/HV ratio of 0.87 suggests implied volatility is running below historical volatility, indicating options are not being priced at a notable premium relative to the stock’s realized movement and appear fairly valued to slightly inexpensive rather than richly priced.

The Call/Put volume ratio is 2.10.

Large Trades

A put buy worth $1.28 million stood out as the key large trade in NOW, with 1,700 contracts bought on the March 19, 2027 $110.00 put. With the stock referenced at $142.45, this strike is out of the money, making it a downside-focused position that typically reflects a bearish directional view or a hedge against a meaningful decline over the longer term. The size and long-dated tenor suggest the trader was willing to pay substantial premium for protection or for leveraged downside exposure rather than expressing a short-term tactical view.

Overall, the large-trade flow in NOW was clearly bearish. The entire displayed block activity was concentrated in long puts, with no offsetting bullish large trades appearing in the data, which points to a market tone centered on downside risk management or anticipation of weaker price action ahead. Taken together, the block order profile suggests institutional sentiment is tilted negative, with traders using put premium to position for or defend against a potential decline in NOW shares.

Strategy Reference

For traders seeking low assignment probability, a short put at the $110.00 strike expiring March 19, 2027 may be considered, though the long-dated tenor carries significant tail risk; alternatively, a bear put spread using the $130.00/$110.00 strikes would reduce upfront margin while still expressing a guarded downside view.