 Mylan NASDAQ: MYL shares experienced unusual options activity on Tuesday. The stock price moved down to 16.09 following the option alert. Sentiment: BULLISH Option Type: SWEEP Trade Type: PUT Expiration Date: 2021-01-15 Strike Price: 22.50 Volume: 374 Open Interest: 41233 Ways Options Activity is UnusualOne way options activity can be considered unusual is when volume is exceptionally high. The volume of options activity refers to the number of shares contracts traded for a day. Contracts that have been traded, but not closed by a counter-party, are called open interest. A purchased contract cannot be considered closed until there exists both a buyer and seller for the option.Another gauge of unusual options activity is a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset.Contracts that are out of the money are also indicative of unusual options activity. Out of the money contracts occur 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 with the expectation that the value of the underlying asset is going to change dramatically in the future, and buyers and sellers will benefit from a greater profit margin.Understanding Sentiment 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 Options Strategies 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 NIOs Unusual Options Activity Unusual Options Activity Insight: JinkoSolar Holding Co Unusual Options Activity Insight: Morgan StanleyC 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 