Less than two weeks ago on September 15, 2021, Unusual Whales published an article on NASDAQ regarding unusual options activity on Cricut Inc. (NASDAQ:CRCT). In the article, we’re shown a series of $30 put options purchases that expired September 17, 2021; a short-term bearish expectation by the investor purchasing those contracts.
When the article was published on September 15, Cricut’s share price had opened at $32.21 per share. Following the article, CRCT saw a pullback going into last week, and has since seen continued upward movement, closing the trading session on Friday, September 24 at $34.01.
Revisiting the CRCT flow now, twelve days later, we can observe that the bullish indications given by the rising stock price are reflected by options traders. Take for instance these orders captured by the Unusual Whales Flow tool last Friday, September 24, 2021.
Three massive orders of 1,000 contracts; two for the $35 call strike expiring on November 19, 2021, and one for the $50 call strike expiring on the same day. The orders were flagged by the tool as part of a multi-leg order, and the premium for these orders totals $880,000. Alongside these three orders is a put order of 1,000, also part of the multi-leg strategy, which could indicate that all three call orders and the put order are related.
This definitely qualifies as “unusual options activity” when you compare these massive orders and overall volume to the Historical options volume for Cricut Inc.
In the image above, it’s clear that options volume for CRCT over the last two weeks is somewhat stagnant. We don’t see many massive orders, and the overall call volume for CRCT never seems to go over 450 daily contracts. That is, until September 24, when the three 1,000 call options orders came in.
Over the last 5 days, Cricut Inc. has risen by a factor of 13.48% from $29.97 on September 20, to $34.01 on September 24. This morning in the Pre-Market session, CRCT reached as high as an additional 1% to $34.82. Given this trend and the unusual options activity, some investors believe that Cricut Inc. could see more upside.