ServiceNow closed at $141.90, down 0.32 percent.

A standout long-dated call purchase dominated the options tape, with a single buyer committing $4.56 million to bullish exposure. The trade targeted the March 2027 $150.00 call, a strike nearly 6 percent above the stock’s close, signaling a multi-year upside thesis rather than a short-term hedge. This large institutional flow outweighed scattered bearish activity and set the tone for a clearly positive sentiment read across NOW’s options market.

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Options Indicators

NOW’s implied volatility stands at 55.99%, and with an IV percentile of 63.75%, 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 aggressively despite a still-moderate absolute IV level. Overall, NOW’s options appear fairly valued to slightly inexpensive, with volatility expectations neither especially stretched nor notably depressed.

The Call/Put volume ratio is 2.21.

Large Trades

A call purchase worth $4.56 million was the dominant large trade, with 2,000 contracts of the March 19, 2027 $150.00 call bought while the stock reference price was $143.22. This strike sits out of the money, so the buyer is positioning for upside over a long-dated horizon and is paying premium for leveraged participation in a move above $150.00 by expiration. The trade’s size and tenor point to a clearly bullish directional view, likely expressing confidence in a meaningful appreciation scenario rather than near-term hedging.

Overall, the large-trade flow leans clearly bullish. The standout activity was a sizable long-dated upside call purchase, while the opposing bearish flow was comparatively small and lacked enough scale to offset the positive signal. Taken together, the bulk-order positioning suggests institutional sentiment is tilted toward further upside in NOW, with traders showing willingness to commit meaningful premium to a longer-term bullish thesis.

Strategy Reference

For traders seeking income without matching the multi-year capital commitment of the large buyer, selling a short-dated out-of-the-money put spread — such as the $130/$125 put spread in the nearest monthly expiration — can capture premium while keeping defined risk and a low probability of assignment, given the prevailing bullish flow and IV/HV discount.