 Shares of Flexion Therapeutics NASDAQ: FLXN saw some unusual options activity on Thursday. Following the unusual option alert, the stock price moved down to 12.23. Sentiment: BULLISH Option Type: TRADE Trade Type: PUT Expiration Date: 2021-02-19 Strike Price: 2.50 Volume: 700 Open Interest: 13 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.A contract with an expiration date in the distant future is another tell of unusual activity. Generally, additional time until a contract expires increases the potential for it to reach its strike price and grow its time value. Time value is important in this context 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.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.Although the activity is suggestive of these strategies, these observations are made without knowing the investors true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if theyre hedging a large underlying position in a common stock. For the latter case, the exposure a large investor has on their short position in common stock may be more meaningful than bullish options activity.Trading Options With These 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 Benzingas Top Upgrades, Downgrades For July 29, 2020 Benzingas Top Upgrades, Downgrades For June 25, 2020C 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. 