Understanding Aurora Cannabis's Unusual Options Activity

On Tuesday, shares of Aurora Cannabis (NYSE: ACB) saw unusual options activity. After the option alert, the stock price moved down to $8.58.

  • Sentiment: BEARISH
  • Option Type: SWEEP
  • Trade Type: CALL
  • Expiration Date: 2021-01-15
  • Strike Price: $8.00
  • Volume: 312
  • Open Interest: 6158

Three Indications Of Unusual Options Activity

Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. 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 …

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