What Are The Three Signs Of Spirit Airlines Unusual Options Activity

What Are The Three Signs Of Spirit Airlines Unusual Options Activity?

Spirit Airlines, Inc. is one of the airline companies. The NYSE SAVE company is providing air transportation for passengers. This all-Airbus Fit Fleet operated over 420 daily flights to 59 destinations in the United States, Caribbean, and Latin America. These are referred to as A320 family aircraft and include the A319, A320, and A321 models, which have common design and equipment but differ most notably in fuselage length, service range, and seat capacity. It has consisted of 29 A319s, 45 A320ceos, five A320neos, and 16 A321ceos. These Bare Fares offerings are unbundled base fares that remove components that are included in the price of an airline ticket. It is allowing customers to pay only for the options they choose, such as bags, advance seat assignments, and refreshments. This route network is including 200 markets served by 59 airports.

Three Signs Of Unusual Options Activity

Spirit Airlines (NYSE: SAVE at https://www.webull.com/quote/nyse-save) shares are experienced unusual options activity on Wednesday. There are  three signs of unusual options activity the following:

  • Extraordinarily large volume

The extraordinarily large volume is one indication of common options activity. Volume is referring to the total shares contracts traded in a day when discussing options activity. A purchased contract cannot be considered closed until there is existing both a buyer and seller for the option.

  • Distant Future

The distant future is one of another tell of unusual activity. Generally, additional time until a contract expires is increased the potential for it to reach its strike price and grow its time value. Time value is important and it is representing the difference between the strike price and the value of the underlying asset.

  • Out of the money

These contracts are unusual because they are purchased with a strike price far from the underlying asset price. Out of the money is occurring when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers are trying to take advantage of a large profit margin.

Bullish And Bearish Sentiments

  • Options are bullish when a call is purchased at/near ask price or a put is sold at/near bid price. Options are bearish when a call is sold at/near bid price or a put is bought at/near asking price.
  • These observations are made without knowing the investor’s true intent by purchasing these options contracts. Bullish options activity is less meaningful than the exposure a large investor has on their short position in common stock like NYSE: EXK at https://www.webull.com/quote/nyse-exk.

Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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