|Bid||1.1300 x 301800|
|Ask||1.1400 x 39400|
|Day's Range||0.9253 - 1.1800|
|52 Week Range||0.1380 - 3.9600|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||N/A|
|Earnings Date||Mar 17, 2021|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||0.36|
Sundial Growers (NASDAQ: SNDL) has been one of the hottest pot stocks of 2021. With a valuation of $2.03 billion, it is up 174% since the start of January (the Horizons Marijuana Life Sciences ETF is up 61% during that same time) as of March 3. Could now be a good time to buy the stock, or is it too risky given that a new earnings report is just weeks away?
On Friday, shares of Sundial Growers (NASDAQ:SNDL) saw unusual options activity. After the option alert, the stock price moved down to $1.12. Sentiment: BEARISH Option Type: TRADE Trade Type: CALL Expiration Date: 2021-03-19 Strike Price: $0.50 Volume: 65 Open Interest: 11224 Three Signs 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 contracts that have been traded, but not yet closed by either counterparty, is called open interest. A contract cannot be considered closed until there exists both a buyer and seller for it. 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 it represents the difference between the strike price and the value of the underlying asset. "Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs 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 try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future. Understanding Sentiment 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. Trading Options With These 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-alerts See more from BenzingaClick here for options trades from BenzingaUnusual Options Activity Insight: Sundial Growers12 Health Care Stocks Moving In Tuesday's After-Market Session© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Reddit users have helped make Sundial Growers (NASDAQ: SNDL) a red-hot pot stock in 2021. Here are two under-the-radar cannabis stocks that I suspect you'll like even better than Sundial Growers. Ayr Wellness (OTC: AYRW.F) is a U.S.-based multistate cannabis operator that recently changed its name from Ayr Strategies.