Shares of LYFT Inc (NASDAQ:LYFT) crashed on Wednesday, even as the company reported better-than-expected first-quarter results. The stock tanked almost 30% on disappointing guidance.
On CNBC's "Options Action," Michael Khouw of Optimize Advisors said that Lyft traded 12 times its average daily call volume.
The activity was mostly short dated, with a lot of contracts expiring by the end of this week, he added.
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There was an institutional buyer of 5,195 of the May 13 weekly 23 strike calls at an average price of 77 cents per contract, Khouw mentioned.
“The buyer is obviously betting that Lyft could rebound by the end of next week,” the analyst said. “This is modestly out of the money, considering where the stock is,” he added.
