EHang Holdings Ltd (EH) experienced a sharp decline of 21.2% in its stock price during the pre-market trading session on Thursday, as heavy bearish activity was observed in the options market, suggesting investors are anticipating further downside for the stock.
According to market data, there was heavy trading volume in EH put options, with the April 2025 $8 strike and January 2025 $10 strike puts being among the most actively traded contracts. The significant put option activity indicates that traders are positioning themselves for potential further declines in EH's share price.
The surge in bearish options trading likely reflects concerns or negative sentiment among investors regarding EHang's prospects, although the specific reasons behind the bearish positioning were not immediately clear. The heavy put volume suggests traders are either speculating on or hedging against a potential steep drop in the stock price in the near future.
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