Decoding MP Materials's Options Activity: What's the Big Picture?

Investors with a lot of money to spend have taken a bearish stance on MP Materials MP.

And retail traders should know.

We noticed this today when the trades showed up on publicly available options history that we track here at Benzinga.

Whether these are institutions or just wealthy individuals, we don’t know. But when something this big happens with MP, it often means somebody knows something is about to happen.

So how do we know what these investors just did?

Today, Benzinga‘s options scanner spotted 17 uncommon options trades for MP Materials.

This isn’t normal.

The overall sentiment of these big-money traders is split between 35% bullish and 41%, bearish.

Out of all of the special options we uncovered, 5 are puts, for a total amount of $147,420, and 12 are calls, for a total amount of $488,783.

Projected Price Targets

After evaluating the trading volumes and Open Interest, it’s evident that the major market movers are focusing on a price band between $24.0 and $42.0 for MP Materials, spanning the last three months.

Analyzing Volume & Open Interest

Looking at the volume and open interest is an insightful way to conduct due diligence on a stock.

This data can help you track the liquidity and interest for MP Materials’s options for a given strike price.

Below, we can observe the evolution of the volume and open interest of calls and puts, respectively, for all of MP Materials’s whale activity within a strike price range from $24.0 to $42.0 in the last 30 days.

MP Materials Option Volume And Open Interest Over Last 30 Days

Largest Options Trades Observed:

About MP Materials

MP Materials Corp is the producer of rare earth materials in the Western Hemisphere. The company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility, the only rare earth mining and processing site of scale in North America. The company is also developing a rare earth metal, alloy, and magnet manufacturing facility in Fort Worth, Texas. The company’s operations are organized into two reportable segments: Materials and Magnetics.

In light of the recent options history for MP Materials, it’s now appropriate to focus on the company itself. We aim to explore its current performance.

MP Materials’s Current Market Status

• With a trading volume of 5,301,917, the price of MP is down by -0.47%, reaching $27.45.
• Current RSI values indicate that the stock is may be approaching overbought.
• Next earnings report is scheduled for 21 days from now.

What Analysts Are Saying About MP Materials

2 market experts have recently issued ratings for this stock, with a consensus target price of $30.5.

Unusual Options Activity Detected: Smart Money on the Move

Benzinga Edge’s Unusual Options board spots potential market movers before they happen. See what positions big money is taking on your favorite stocks. Click here for access.
* An analyst from BMO Capital has decided to maintain their Market Perform rating on MP Materials, which currently sits at a price target of $29.
* Consistent in their evaluation, an analyst from DA Davidson keeps a Buy rating on MP Materials with a target price of $32.

Options trading presents higher risks and potential rewards. Astute traders manage these risks by continually educating themselves, adapting their strategies, monitoring multiple indicators, and keeping a close eye on market movements. Stay informed about the latest MP Materials options trades with real-time alerts from Benzinga Pro.