PLx Pharma (NASDAQ:PLXP) - Unusual Options Activity Insight: PLx Pharma benzinga.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from benzinga.com Daily Mail and Mail on Sunday newspapers.
Three Ways Options Activity Is ‘Unusual
Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
The trading of a contract with an expiration date in the distant future is another sign of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context because it represents the difference between the strike price and the value of the underlying asset.
Shares of Citigroup (NYSE:C) saw some unusual options activity on Wednesday. Following the unusual option alert, the stock price moved up to $71.72.
Sentiment: BEARISH
Option Type: TRADE
Trade Type: PUT
Expiration Date: 2021-09-17
Strike Price: $40.00
Volume: 750
Open Interest: 10926
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