Unusual Options Activity Insight: Vimeo

Benzinga Insights , Benzinga Staff Writer   July 21, 2021 1:48pm   459   Comments On Wednesday, shares of Vimeo (NASDAQ:VMEO) saw unusual options activity. After the option alert, the stock price moved down to $43.59. Sentiment: BEARISH Option Type: TRADE Trade Type: CALL Expiration Date: 2021-08-20 Strike Price: $45.00 Volume: 6075 Open Interest: 68 Three Ways Options Activity Is ‘Unusual’ One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer). Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because…
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