Noteworthy Tuesday Option Activity: BE, LMND, MDGL

Lemonade Inc (LMND) experienced notable options activity, with total volume reaching 40.3% of its average daily trading volume, and a concentration in the $39 strike put option expiring June 2025. Similarly, Madrigal Pharmaceuticals Inc (MDGL) saw options volume at 40.2% of its average daily trading volume, particularly in the $360 strike call option expiring July 2025, suggesting increased speculative interest in both companies.

Analysis

Lemonade Inc. (LMND) and Madrigal Pharmaceuticals Inc. (MDGL) both experienced notable options market activity. For LMND, total options volume reached 9,554 contracts, equivalent to approximately 955,400 underlying shares and representing a significant 40.3% of its average daily trading volume of 2.4 million shares over the past month. A substantial portion of this activity was concentrated in the $39 strike put option expiring June 27, 2025, which saw 1,146 contracts traded, indicating potential hedging or bearish speculation on a medium-term horizon. Similarly, MDGL recorded options trading volume of 1,266 contracts, or about 126,600 underlying shares, constituting 40.2% of its average daily volume of 314,880 shares. The activity in MDGL was particularly pronounced for the $360 strike call option expiring July 18, 2025, with 800 contracts changing hands, suggesting bullish positioning or anticipation of positive developments. This heightened options volume in specific, long-dated contracts for both companies signals increased investor focus and potential strategic positioning ahead of future catalysts or price movements.

Key Decisions for Investors

• Investors should closely monitor Lemonade Inc. for fundamental developments that might justify the significant bearish or hedging interest indicated by the high volume in its June 2025 $39 strike put options.
• For Madrigal Pharmaceuticals, the substantial activity in July 2025 $360 strike call options warrants attention to potential upcoming catalysts that could support a significant upward price movement or if this activity represents strategic hedging.
• Consider tracking changes in open interest and implied volatility for these specific LMND and MDGL option contracts to further gauge conviction and market expectations surrounding these positions.