 Shares of Carnival NYSE: CCL saw some unusual options activity on Tuesday. Following the unusual option alert, the stock price moved down to 14.41. Sentiment: BEARISH Option Type: SWEEP Trade Type: PUT Expiration Date: 2021-01-15 Strike Price: 10.00 Volume: 1809 Open Interest: 137633 Indications of Unusual Options Activity Extraordinarily large volume is one indication of unusual options activity. Volume refers to the total shares contracts traded in a day when discussing options activity. Open interest describes unsettled contracts that have been traded but not closed by a counter-party. In other words, for each contract buyer, there must be a seller. A purchased contract remains open until a seller closes it, and vice versa.When a contract has an expiration date in the distant future, it is generally another sign of unusual activity. Usually, additional time until a contract expires allows more opportunity for it to reach its strike price and grow its time value. Time value is important to consider because it represents the difference between the strike price and the value of the underlying asset.Contracts with a strike price far from the underlying price are also considered unusual because they are defined as being out of the money. This occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. These trades are made because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin.Bullish and Bearish Sentiments Options are bullish when a call is purchased atnear ask price or a put is sold atnear bid price. Options are bearish when a call is sold atnear bid price or a put is bought atnear ask price.These observations are made without knowing the investors true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.Using These Strategies to Trade Options 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 more from Benzinga Analyzing Carnivals Unusual Options Activity Morning Market Stats in 5 Minutes Understanding Carnivals Unusual Options ActivityC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 