|Bid||0.00 x 900|
|Ask||0.00 x 1100|
|Day's Range||18.05 - 20.35|
|52 Week Range||9.50 - 31.80|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||343.58|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Shares of electric-pickup start-up Lordstown Motors (NASDAQ: RIDE) opened higher in the company's first post-merger trading session on Monday morning. Lordstown completed its merger with DiamondPeak Holdings (NASDAQ: DPHC), a special-purpose acquisition company, late on Friday. As of 10 a.m. EDT, shares of the newly combined company were up about 10.9% from DiamondPeak's closing price on Friday.
DiamondPeak Hldgs (NASDAQ: DPHC) shares experienced unusual options activity on Tuesday. The stock price moved down to $19.7 following the option alert. * Sentiment: BEARISH * Option Type: SWEEP * Trade Type: PUT * Expiration Date: 2020-11-20 * Strike Price: $20.00 * Volume: 555 * Open Interest: 4839Three Signs Of Unusual Options Activity 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. 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.Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater 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 ask price.Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity.Using These Options Strategies Unusual options activity is an advantageous strategy that may greatly reward an investor if they are highly skilled, but for the less experienced trader, it should remain as another tool to make an educated investment decision while taking other observations into account.For more information to understand options alerts, visit https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alertsSee more from Benzinga * Options Trades For This Crazy Market: Get Benzinga Options to Follow High-Conviction Trade Ideas * Benzinga's Top Upgrades, Downgrades For October 13, 2020 * 11 Financial Services Stocks Moving In Tuesday's Pre-Market Session(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares of DiamondPeak Holdings (NASDAQ: DPHC) rose as much as 12.5% Friday, and are currently 10% higher, as of 2:15 p.m. EDT. The special purpose acquisition company (SPAC) announced news on its plans to merge with aspiring electric-truck maker Lordstown Motors. DiamondPeak announced Thursday that it has set Oct. 22, 2020, as the meeting date for a vote to approve its planned merger with Lordstown Motors.