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Intuitive Machines Faces Bearish Option Trades Even as Stock Surges 50%
A number of institutional investors and/or speculators have taken a contrarian view on $Intuitive Machines (LUNR.US)$ at a time when the stock is surging more than 50%.
Shares jumped after the space exploration company announced that it was awarded a contract worth as much as $4.82 billion for communication and navigation services for missions in the near space region, which extends from the earth's surface to beyond the moon.
But as the shares were rallying, six unusual activities were posted in the options market, five of which were bearish positions, data tracked by moomoo showed. The biggest of them involved an active seller offering call options that give the holder the right to buy the stock at $4 by March 21, 2025. The buyer paid a premium of $4.90 a share for those call options.
Two other big transactions involved selling call options on the stock while another two were active buys of put options that could protect the holder against a reversal of the uptrend.
The bearish trades were posted even amid increasing demand for call options. More than 193,000 call options spread across 12 expiration dates stretching through Jan. 15, 2027, data tracked by moomoo showed. That's more than five times the 20-day average volume, according to data compiled by Bloomberg.
Including put options, more than 253,580 contracts were traded as of 12:53 p.m., making Intuitive Machines the fifth most active stock option, behind $NVIDIA (NVDA.US)$, $Apple (AAPL.US)$, $Tesla (TSLA.US)$ and $Intel (INTC.US)$. (To see the options ranking, click here.)
While the stock's moving average shows a bullish trend, not all technical indicators are positive on the stock. Eleven of 15 gauges tracked by moomoo are flashing signs that the stock could now be overbought, and the trend may be turning bearish.
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Luzi Ann Santos
Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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情何以堪啊 : I don't understand
Samuel Lee : Think it ends up ppl selling covered calls
吃个猪脸 : Add to positions on a 50 basis point drop, 25 basis points, do not add to positions or reduce positions on a drop.
PaulG : Informative article
EZ_money : that just means we buy more
74423696 : Thank you so much for appreciating.
