- Discusses the concept of unusual options activity using examples from Carnival and Twilio. Speculates whether such actions point towards insider trading or are just astute investment strategies.
In recent days, several individual and institutional investors have taken note of significant, unconventional options activity associated with two large corporations: Carnival (NYSE:CCL) and Twilio (NYSE: TWLO). This surge in atypical behavior has sparked considerable speculation as to whether these actions potentially indicate insider trading or are simply strategic moves on behalf of savvy investors.
Leading the way in this space is Carnival, the popular cruise ship company. On closely studying the trading behavior, Benzinga's options scanner picked up 11 unusual options trades involving Carnival, marked with a 63% bullish sentiment and 36% bearish sentiment among big-money traders. This means more than half of those steering the market believe Carnival stocks are undervalued and are likely to increase in the future. While some see this as a sign of insider knowledge, it could simply be a result of astute investors taking advantage of negative market sentiment due to the ongoing pandemic.
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