Unusual options activity can be a hit-or-miss affair, particularly because the derivatives market is rather opaque. Given that puts and calls can be incorporated as debit or credit-based strategies, merely witnessing aberrant trades may not be enough to ascertain forward predictability. Further, because contracts can be incorporated into multi-leg strategies, the underlying implications are rarely intuitive.
Still, there are occasionally intriguing ideas that pop up. In my opinion, insurance specialist Root Inc (ROOT) is worth a closer look, especially if you’re a risk-tolerant speculator.
