Short interest for Global X Lithium & Battery Tech ETF gives investors a sense of the degree to which investors are betting on the decline of Global X Lithium & Battery Tech ETF's stock. Short interest data is updated every two weeks.

Global X Lithium & Battery Tech ETF (ARCA:LIT), Short Interest Report

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The EV industry is facing a major shift as lithium and nickel producers pause projects and shut down mines due to plummeting commodity prices, impacting investment and slowing growth.

EV Battery Metal Market Faces Downturn As Prices Plummet: What&#39;s Next For The Industry?

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Shares of lithium stocks are trading higher. Chile opened 26 lithium salt flats for investment.

The electric vehicle (EV) industry is experiencing a significant shift as producers of lithium and nickel, essential components in lithium-ion batteries, are pausing projects and shutting down mines in a bid to conserve cash. This move comes in the wake of a dramatic decrease in commodity prices, with lithium prices dropping by up to 90% since last year, and nickel prices seeing <a href="https://www.benzinga.com/money/best-lithium-stocks">a reduction by about half.</a>
Albemarle Rethinks South Carolina Project Amid Price Crash
According to the <a href="https://www.wsj.com/finance/commodities-futures/the-boom-in-battery-metals-for-evs-is-turning-to-bust-5630493c">Wall Street Journal</a>, Albemarle Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALB#NYSE">ALB</a>), a key player in the production of battery metals, is reevaluating its plans for a high-tech $1.3 billion lithium processing plant in South Carolina. 
This project, intended to support South Carolina&#8217;s growing electric-vehicle industry, is now on hold due to the sharp decline in battery metal prices and a slowdown in the growth of electric-vehicle sales in both the U.S. and China. 
As a result, Albemarle is implementing company-wide cost-cutting measures, including layoffs and delays in other investments.
Glencore and BHP Group Face Setbacks
Glencore, a Swiss mining and trading giant, announced the suspension of operations at an unprofitable nickel mine and processing plant in New Caledonia, citing high operating costs and a weak market. The company is looking for buyers for its stake in this venture that contributes over 6% to the world&#8217;s nickel supply.
Meanwhile, BHP Group (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHP#NYSE">BHP</a>), the world&#8217;s largest miner by market value, has indicated that it may need to close its Australian nickel business temporarily. Despite having supply agreements with major automakers like Tesla and Ford Motor, BHP is wary of a quick market recovery.
Industry Challenges and Investment Slowdown
The global supply of lithium and nickel has surged as producers expanded operations to meet the anticipated demand from the EV industry. However, with the growth of EV sales slowing down, several automakers, including Ford, General Motors, and Volvo, are adopting a more cautious approach, delaying investments due to uncertain consumer demand. 
This cautious stance is further evidenced by the bankruptcy filing of British electric-vehicle maker Arrival&#8217;s U.K. business, attributing its challenges to adverse macroeconomic conditions.
ETFs Reflect Market Downturn
The downturn has also impacted investment products linked to the battery metal sector. The Global X Lithium &amp; Battery Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LIT#NYSE">LIT</a>), which offers exposure to global lithium companies, has declined by 37% in the past year, with a more than 50% drop since its peak in 2021. Similarly, the Sprott Nickel Miners ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NIKL#NASDAQ">NIKL</a>) has experienced a 45% decrease since July 2023.
Chart: Significant Decline in Lithium and Nickel-Related Stocks Since Last Summer 
<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="1024" height="495" src="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/19155604/image-41-1024x495.png" alt="" class="wp-image-220984" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/19155604/image-41-1024x495.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/19155604/image-41-300x145.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/19155604/image-41-768x372.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/19155604/image-41-1536x743.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2024/02/19155604/image-41.png 1920w" sizes="(max-width: 1024px) 100vw, 1024px" /></figure>
Looking Ahead: Potential for Recovery Amid Challenges
Despite the current downturn, some industry analysts believe that the scale of the cutbacks might be moderate, suggesting that miners are still optimistic about long-term demand. Lower metal prices could eventually benefit automotive companies by enabling them to offer cheaper models and discounts, potentially reigniting sales growth. 
However, the current slowdown in mining operations poses a risk of future shortages if demand for EVs surges again, potentially leaving car manufacturers in search of supplies.
Read now: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/02/37169552/exclusive-value-investor-is-very-happy-to-take-advantage-of-top-gold-miner-at-histo">EXCLUSIVE: Value Investor Is &#8216;Very Happy To Take Advantage&#8217; Of Top Gold Miner At Historical Discount</a>
Image created using artificial intelligence with MidJourney.

EV Battery Metal Market Faces Downturn As Prices Plummet: What's Next For The Industry?

We performed a screening of mid-cap ETFs &#8211; defined as having Assets Under Management (AUM) between $2 billion and $10 billion &#8211; to determine what funds had the largest change in net assets on the week, according to data from <a href="http://etfdb.com">etfdb.com</a>. Only non-leveraged funds were considered.&nbsp;
<h2 class="wp-block-heading">Winners</h2>
abrdn Physical Gold Shares ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SGOL#NYSE">SGOL</a>)
SGOL was up 2.71% on the week.
The abrdn Physical Gold Shares ETF provides exposure to the spot price of gold. The fund holds real gold bullion in its vault in Switzerland.
SGOL has $2.78 billion in AUM and an expense ratio of 0.17%.
YTD, SGOL is up 8.41%.
SPDR Gold MiniShares Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLDM#NYSE">GLDM</a>)
GLDM is up 2.61% over the trailing week.
SPDR Gold MiniShares Trust, like SGOL, provides exposure to gold without the need to personally own bullion. The price will move synchronously with the spot price of gold.
GLDM has $6.19 billion in AUM and an expense ratio of 0.10%.&nbsp;
GLDM is up 8.48% YTD.
<h2 class="wp-block-heading">Losers</h2>
Global X Lithium &amp; Battery Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LIT#NYSE">LIT</a>)
LIT is down 7.50% over the trailing week.
The Global X Lithium &amp; Battery Tech ETF is designed to offer exposure to companies involved in the lithium industry, from exploration and mining to the development and manufacture of new technologies. Lithium and lithium-ion batteries are a critical component of much of the technology that drives the modern world.
The fund has $3.37 billion in AUM and an expense ratio of 0.75%. LIT has 42 holdings, with the 10 largest comprising 55.94% of the fund.
The fund's largest holdings are Albemarle Corporation (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ALB#NYSE">ALB</a>) and Tesla, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TSLA#NASDAQ">TSLA</a>) making up 7.91% and 7.58% of the fund, respectively.
LIT is down 16.18% YTD.
Vanguard Extended Duration Treasury ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EDV#NYSE">EDV</a>)
EDV is down 7.48% over the trailing week.
The Vanguard Extended Duration Treasury ETF provides exposure to long-dated US treasuries. The maturity dates range from 20 to 30 years.
The fund has $2.19 billion in AUM and an expense ratio of .06%.
EDV is down 21.71% YTD.

GLDM

SGOL

Gold Up For Another Week Approaching All-Time High, Gold Funds Pop - ETF Winners And Losers: Mid-Cap Returns

Lithium is a metal that has soared in popularity and demand in recent years thanks to its inclusion<a href="https://www.benzinga.com/electric-vehicles"> in electric vehicles.</a>
A disclosure of a new lithium deposit that could be the biggest in the world could be good news for the electric vehicle sector and a company that has rights to the mining area.
What Happened: With electric vehicle sales expected to increase over time and<a href="https://www.benzinga.com/news/23/09/34453211/global-ev-market-share-reaches-15-in-2023-top-players-vehicles-and-companies-dominating-sector"> gain market share </a>over traditional automakers, investors may be looking for ways to invest in the growth.
There are multiple ways to invest in electric vehicle growth including stocks and ETFs and one area of focus could be lithium, given its placement in the supply chain.
With more lithium needed to produce more battery-powered electric vehicles, the sector may have gotten great news with the discovery that 20 to 40 million tons of lithium could be contained within a volcanic crater near the Nevada and Oregon border.
This total, <a href="https://www.chemistryworld.com/news/lithium-discovery-in-us-volcano-could-be-biggest-deposit-ever-found/4018032.article">reported </a>by Chemistry World, would make the lithium deposit the largest in the world.
The area is not currently mined, with Native Americans contesting mine development according to the report.
Related Link: <a href="https://www.benzinga.com/trading-ideas/long-ideas/23/07/33443954/as-electric-vehicle-transition-charges-higher-this-etf-tracks-lithium-a-critical-battery">As Electric Vehicle Transition Charges Higher, This ETF Tracks Lithium</a>
Why It&rsquo;s Important: Lithium Americas Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lac#NYSE">LAC</a>) owns rights to the Thacker Pass mine in Nevada in the region. The company&rsquo;s geologist Thomas Benson was part of the research team that reported on the new discovery.
Benson said Lithium Americas could begin mining in the region in 2026. The company will remove the clay with water and then separate out the lithium. Benson said the Tacker Pass region is &ldquo;unique.&rdquo;
A leading geologist said the discovery could be significant.
&ldquo;It they can extract the lithium in a very low energy-intensive way, or in a process that does not consume much acid, then this can be economically very significant,&rdquo; Geologist Anouk Borst said. &ldquo;The U.S. would have its own supply of lithium and industries would be less scared about supply shortages.&rdquo;
Tesla CEO Elon Musk <a href="https://twitter.com/elonmusk/status/1700805058370113934">highlighted </a>the importance of lithium in a reply to a X, formerly known as Twitter,&nbsp;user who shared the article.
&ldquo;Lithium ore is quite common throughout the world. The limiting factor is lithium refining,&rdquo; Musk said. &ldquo;Refining matters more than ore.&rdquo;
Lithium Americas has several lithium facilities in the pre-production stages and could become a major player in lithium refining.
The company reported second-quarter financial results in August with earnings per share of 16 cents beating a Street consensus estimate of a loss of 10 cents per share.
Piper Sandler<a href="https://www.benzinga.com/quote/LAC/analyst-ratings"> maintained an Overweight</a> rating on the stock and lowered the price target from $33 to $29 after the results.
Investors have <a href="https://www.benzinga.com/money/best-lithium-etf">several ETFs</a> to choose from that include lithium-related companies including the Global X Lithium &amp; Battery Tech ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lit#NYSE">LIT</a>) and the Amplify Lithium &amp; Battery Technology ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/batt#NYSE">BATT</a>). Lithium Americas Corp is a holding in both ETFs.
LAC Price Action: Lithium Americas shares trade at $19.26, gaining 7% over the past five trading days. The stock has traded between $16.07 and $31.98 over the past 52 weeks.
Read Next: <a href="https://www.benzinga.com/money/how-to-invest-in-lithium">How To Invest In Lithium</a>
Photo: Shutterstock 
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BATT

Was The Biggest Lithium Deposit Just Found? Here's The Stock Investors Should Know

We performed a screening of medium-cap ETFs, defined as having Assets Under Management (AUM) between $2 billion and $10 billion - to determine what funds had the largest positive and negative returns on the week, according to data from <a href="http://etfdb.com">etfdb.com</a>. Only non-leveraged funds were considered.
<h2>Winners</h2>
SPDR S&amp;P Regional Banking ETF (NYSEARCA: KRE)
KRE is up 7.54% over the trailing week.
The SPDR S&amp;P Regional Banking ETF is linked to an equal weighted index of regional bank stocks, an industry that has seen much turmoil this year after the collapse of several high profile banks. KRE is more diversified and evenly distributed than its competitors.
The fund has $3.60 billion in AUM and an expense ratio of 0.35%. KRE has holdings in 141 companies, with the 10 largest comprising 21.46% of the fund.
The fund&rsquo;s largest holdings are Western Alliance Bancorp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/wal#NYSE">WAL</a>) and Zions Bancorporation, N.A. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/zion#NASDAQ">ZION</a>) making up 2.29% and 2.26% of the fund, respectively.
KRE is down 19.64% YTD.
SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSEARCA: XOP)
XOP is up 5.43% over the trailing week.
The SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF offers exposure to the exploration and production sub sector of the domestic oil market. Like many of State Street&rsquo;s products, it is equal weighted, making it a balanced option.
The fund has $3.76 billion in AUM and an expense ratio of 0.35%. XOP has holdings in 61 companies, with the 10 largest comprising 24.51% of the fund.
The fund&rsquo;s largest holdings are Southwestern Energy Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/swn#NYSE">SWN</a>) and SM Energy Company (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sm#NYSE">SM</a>) making up 2.62% and 2.6% of the fund, respectively.
XOP is up 1.63% YTD.
<h2>Losers</h2>
Global X Lithium &amp; Battery Tech ETF (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lit#NASDAQ">LIT</a>)
LIT was down 4.18% on the week.
The Global X Lithium &amp; Battery Tech ETF offers exposure to companies participating in the lithium ion battery industry. Li ion batteries are a crucial part of modern technology and underpin the entire EV market. 
LIT has $3.40 billion in AUM and an expense ratio of 0.75%. The fund has holdings in 41 companies, with the 10 largest comprising 53.36% of the fund.
The fund&rsquo;s largest holdings are Albemarle Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/alb#NYSE">ALB</a>) and Tesla, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) making up 8.97% and 6.37% of the fund, respectively.
YTD, LIT is up 11.43%.
KraneShares CSI China Internet ETF (NYSEARCA: KWEB)
KWEB was down 3.69% on the week.
KraneShares CSI China Internet ETFis the only ETF on the market that offers pureplay exposure to Chinese software and information technology stocks. These companies directly compete with the FANG behemoths that dominate the US market.
KWEB has $5.32 billion in AUM and an expense ratio of 0.69%. The fund has holdings in 32 companies, with the 10 largest comprising 60.52% of the fund.
The fund&rsquo;s largest holdings are Tencent Holdings Ltd. (HKG: 700) and Alibaba Group Holding Limited (HKG: 9988) making up 9.39% and 9.39% of the fund, respectively.
YTD, KWEB is down 6.72%.
Featured photo by<a href="https://unsplash.com/@etiennemartin?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Etienne Martin</a> on<a href="https://unsplash.com/s/photos/bank?utm_source=unsplash&amp;utm_medium=referral&amp;utm_content=creditCopyText"> Unsplash</a>

ZION

ETF Winners And Losers: Medium-Cap Returns - Regional Banks Bounce While Lithium Stocks Slump, KRE Up 7.54%, LIT Down 4.18%

<a href="https://asia.nikkei.com/Economy/Japan-to-subsidize-half-of-costs-for-lithium-and-key-mineral-projects#:~:text=Japan%20to%20subsidize%20half%20of%20costs%20for%20lithium%20and%20key%20mineral%20projects,-Push%20to%20reduc" title="https://asia.nikkei.com/Economy/Japan-to-subsidize-half-of-costs-for-lithium-and-key-mineral-projects#:~:text=Japan%20to%20subsidize%20half%20of%20costs%20for%20lithium%20and%20key%20mineral%20projects,-Push%20to%20reduc">https://asia.nikkei.com/Economy/Japan-to-subsidize-half-of-costs-for-lithium-and-key-mineral-projects#:~:text=Japan%20to%20subsidize%20half%20of%20costs%20for%20lithium%20and%20key%20mineral%20projects,-Push%20to%20reduc</a>
<a href="https://asia.nikkei.com/Economy/Japan-to-subsidize-half-of-costs-for-lithium-and-key-mineral-projects#:~:text=Japan%20to%20subsidize%20half%20of%20costs%20for%20lithium%20and%20key%20mineral%20projects,-Push%20to%20reduce&amp;text=TOKYO%20%2D%2D%20The%20Ministry%20of,Japanese%20companies%2C%20Nikkei%20has%20learned" title="https://asia.nikkei.com/Economy/Japan-to-subsidize-half-of-costs-for-lithium-and-key-mineral-projects#:~:text=Japan%20to%20subsidize%20half%20of%20costs%20for%20lithium%20and%20key%20mineral%20projects,-Push%20to%20reduce&amp;text=TOKYO%20%2D%2D%20The%20Ministry%20of,Japanese%20companies%2C%20Nikkei%20has%20learned">https://asia.nikkei.com/Economy/Japan-to-subsidize-half-of-costs-for-lithium-and-key-mineral-projects#:~:text=Japan%20to%20subsidize%20half%20of%20costs%20for%20lithium%20and%20key%20mineral%20projects,-Push%20to%20reduce&amp;text=TOKYO%20%2D%2D%20The%20Ministry%20of,Japanese%20companies%2C%20Nikkei%20has%20learned</a>.

Macro Economic Events

'Japan to subsidize half of costs for lithium and key mineral projects' -Nikkei

Lithium is quickly becoming one of the most precious commodities of the day.
As the world desperately tries to move towards more sustainable alternatives to carbon-emitting technology, the metal is becoming a key in the transition to electric vehicles (EVs) and away from fossil fuels.
The Inflation Reduction Act of 2022 included <a href="https://www.benzinga.com/government/22/08/28603952/bidens-inflation-bill-seen-cutting-1-9t-in-economic-damage-latest-analysis-finds">several provisions aimed at stimulating the clean energy economy</a>, such as&nbsp;solar, wind and clean hydrogen, by committing between $0.7 and $1.9 trillion in climate-related benefits through 2050.
Part of that included&nbsp;expanding tax credits for EVs and pushing for domestic sourcing of materials to promote a local EV supply chain.
&ldquo;Everybody needs lithium,&rdquo; said Eric Norris, lithium president of Albemarle Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/alb#NYSE">ALB</a>), <a href="https://www.bnnbloomberg.ca/lithium-rally-has-more-room-to-run-thanks-to-us-climate-bill-1.1856939">as</a><a href="http://www.bnnbloomberg.ca/lithium-rally-has-more-room-to-run-thanks-to-us-climate-bill-1.1856939">&nbsp;per&nbsp;</a>Bloomberg.
Lithium production is entering a more regionalized phase through the formation of new supply chains. Together with increased demand from a rise in EV sales, the metal is experiencing&nbsp;an unprecedented price boost.
Since the act went into law in August, more than $13 billion in investment has gone toward raw material production for batteries and EV manufacturing.
In mid-November, prices for raw lithium reached an all-time high in China. The commodity has since dropped -3.54% but it&rsquo;s still up on a year-over-year basis by 156.85%.
Global X Lithium &amp; Battery Tech ETF (ARCA: LIT) has not yet caught on. The ETF tracks the Solactive Global Lithium Index and invests in the full lithium cycle, from mining and refining the metal, through battery production.
The ETF was down 21.8% since January, underperforming the S&amp;P 500 by 4.5&nbsp;basis points.
Fully-integrated lithium company Livent Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lthm#NYSE">LTHM</a>), which was selling at $23.92, was only down 6.45% since January, outperforming the general equity market. The stock, however, was down almost 50% from its price one month ago.
While the lithium industry was experiencing a correction from its mid-November highs, the basic principles behind its thesis (rising demand for a scarce resource) should continue to support the industry&rsquo;s fundamentals in the medium to long term.
&ldquo;If you take those forecasts of demand, then we can never expand lithium supply quickly enough to catch up,&rdquo; said Livent CEO&nbsp;Paul Graves&nbsp;in a recent interview with the <a href="http://www.ft.com/content/511e45e0-fd87-4197-b690-a03597d62768">Financial Times</a>.
While demand for the metal soars, the global infrastructure is still not in place to meet it.
Shortages in lithium could&nbsp;be a new normal for the next decade, said the executive, leading to fewer car sales and hampering plans to decarbonize the auto industry as soon as it&#39;s needed to meet climate change goals.
Albemarle Corporation&#39;s&nbsp;lithium division, which accounted for 41.0% of revenue in 2021, was up 7.7% since January but its price throughout the year had&nbsp;shown unsettling volatility.
Now sitting at $254.34&nbsp;per share, the company had a 52-year high of $334.55 and a low of $169.93.
While the price of raw lithium was expected to continue on an upwards course, industries based around processing and manufacturing with the commodity present a more complex landscape.
Major macroeconomic factors can exert strong effects on demand for new vehicles and affect those companies on the battery side of the lithium industry. Companies purely focused on the extraction and sale of lithium as a raw material such as&nbsp;Sociedad Quimica y Minera de Chile (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sqm#NYSE">SQM</a>) might have the advantage through volatile times, but risk losing the upper hand in the long term.
Read Next:&nbsp;<a href="https://www.benzinga.com/news/22/12/29986092/warren-buffett-still-loves-byd-despite-berkshires-stake-cut-assures-ev-company-exec-very-natural-for">Warren Buffett Still Loves BYD Despite Berkshire&#39;s Stake Cut, Assures EV Company Exec: &#39;Very Natural For Him To...&#39;</a>
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Global

Lithium Is Becoming The New 'White Gold' — But Its Use Can Present More Complex Challenges

Albemarle Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/alb#NYSE">ALB</a>) and a number of other stocks in the lithium sector gained ground recently, not only because the S&amp;P 500 experienced a bullish reaction to the release of the Federal Reserve&#39;s monthly minutes, where the Fed <a href="https://www.benzinga.com/news/22/07/28231431/federal-reserve-issues-second-straight-0-75-interest-rate-hike-largest-since-1994">raised the benchmark interest rate</a> by 0.75% for a second month in a row.
Tesla&nbsp;Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>) CEO Elon Musk&nbsp;took to Twitter Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/twtr#NYSE">TWTR</a>) on July 13&nbsp;to <a href="https://twitter.com/elonmusk/status/1547271599555940352?s=20&amp;t=KicUOGyU2l7uYRvLhRL5Fw">post</a> that &ldquo;lithium batteries are the new oil.&rdquo;
The comment was in response to a statement Craft Ventures co-founder and partner David Sacks made on the micro-blogging platform, which said&nbsp;&quot;If this year proves anything, it&rsquo;s that there can be no security without energy independence,&rdquo; likely in reference to the ongoing oil woes caused by Russia&rsquo;s invasion of Ukraine.
Musk replied, &ldquo;Absolutely,&rdquo; before comparing the EV battery metal to oil using a saying regularly reserved&nbsp;for describing clothing trends.
A Look At The Markets: Although the world is slowly but steadily moving toward EV adoption, markets are controlled by supply and demand. While lithium is experiencing high demand due to the increase in electric vehicle production, rising inflation and a looming recession could thwart the heavy adoption of the technology by consumers in the near term.
Oil is also in a tricky situation because, despite the transition away from traditional gasoline-powered engines, the war in Ukraine has pushed to the forefront how dependent the world remains on fossil fuels.
See Also:&nbsp;<a href="https://www.benzinga.com/news/22/07/28273450/did-elon-musk-predict-the-u-s-recession">Did Elon Musk Predict The US Recession?</a>
Lithium Vs.&nbsp;Oil ETFs: Lithium-based ETF, Global X Lithium and Battery ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lit#NYSE">LIT</a>) experienced a massive bull run between April and November 2021, but has since been in decline. LIT has plunged about 23% since its Nov. 22, 2021, all-time high of $97.13 and is down 13% year-to-date.
On the other hand, the United States Oil ETF&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/uso#NYSE">USO</a>), which holds mostly short-term NYMEX futures contracts on WTI crude oil experienced a longer bull cycle, soaring 100% higher between Dec. 2, 2021, and its June 8 all-time high of $92.20. The ETF has since retraced about 15% from the all-time high, but is trading up about 44% year-to-date.
The Benzinga Take: Eventually, Elon Musk&rsquo;s statement will become fact, as the paradigm continues to shift and&nbsp;countries around the globe work to meet their green initiatives to&nbsp;phase out gas-guzzling vehicles in favor of electric modes of transportation.
For the time being, although lithium is more in vogue, the world depends on oil and EVs remain largely a luxury.
See Also:&nbsp;<a href="https://www.benzinga.com/news/22/07/28277145/elon-musk-countersues-twitter-over-44bln-deal-heres-what-you-need-to-know">Elon Musk Countersues Twitter Over $44B Deal: Here&#39;s What You Need To Know</a>
Photo:&nbsp;<a href="https://www.shutterstock.com/g/tunasalmon">tunasalmon</a>&nbsp;via Shutterstock

Movers

TWTR

Elon Musk Says This Battery Metal Is The New Oil: But Should The Vehicle Connoisseur Take His Foot Off The Accelerator?

The surging cost of lithium could impact the electric vehicle market as the commodity is a major component for companies like Tesla Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/tsla#NASDAQ">TSLA</a>). Here&rsquo;s what Tesla CEO Elon Musk is suggesting to help offset the rising price.
What Happened: A tweet shared recently from the Twitter Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/twtr#NYSE">TWTR</a>) account <a href="https://twitter.com/stats_feed/status/1512445210097160195">World of Statistics</a> highlighted the rising price of lithium.
Lithium is now trading at $78,032 per ton according to the post. Here&rsquo;s a look at how that stacks up with recent years.
<ul>
<li>2012: $4,450</li>
<li>2013: $4,750</li>
<li>2014: $4,680</li>
<li>2015: $5,110</li>
<li>2016: $8,840</li>
<li>2017: $12,070</li>
<li>2018: $14,660</li>
<li>2019: $11,310</li>
<li>2020: $6,800</li>
<li>2021: $17,000</li>
</ul>
The post prompted a <a href="https://twitter.com/elonmusk/status/1512505545416224783">response </a>from Musk, who said that Tesla could consider getting into the mining and refining business.
<blockquote class="twitter-tweet">Price of lithium has gone to insane levels! Tesla might actually have to get into the mining &amp; refining directly at scale, unless costs improve.
There is no shortage of the element itself, as lithium is almost everywhere on Earth, but pace of extraction/refinement is slow.
&mdash; Elon Musk (@elonmusk) <a href="https://twitter.com/elonmusk/status/1512505545416224783?ref_src=twsrc%5Etfw">April 8, 2022</a></blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>Several analysts recently shared their takes on the rising cost of commodities and the impact on the electric vehicle industry.
Morgan Stanley analyst Adam Jonas <a href="https://www.benzinga.com/analyst-ratings/analyst-color/22/03/26278500/rising-battery-costs-pressure-ev-manufacturers-why-morgan-stanley-says-tesla-is-bet">said </a>there might be little relief for companies that need lithium for vehicles.
&ldquo;Lower margins and/or demand destruction may be on the horizon,&rdquo; Jonas said.
Why It&rsquo;s Important: The note from Jonas highlighted that many battery manufacturers buy lithium at spot prices and don&rsquo;t lock in costs with long-term contracts. As a result, batteries might cost 25% more to make.
Jonas singled out Tesla as being a company that could hold up better than others due to its scale and vertical integration.
AMC Entertainment Holdings (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/amc#NYSE">AMC</a>) recently made headlines for <a href="https://www.benzinga.com/markets/penny-stocks/22/03/26404173/exclusive-hycroft-mining-ceo-talks-amc-investment-unlocking-value-for-shareholders-and-whats">acquiring </a>a stake in Hycroft Mining Holding Co (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hymc#NASDAQ">HYMC</a>), a gold and silver mining company.
While AMC&rsquo;s investment was more about exploring a new sector, Tesla could take a similar approach and invest in or acquire lithium mining companies to help its supply chain.
Tesla <a href="https://www.benzinga.com/tech/21/11/23797736/tesla-expands-battery-production-plans-signs-supply-agreement-with-ganfeng-lithium">signed </a>a contract for lithium with Ganfeng Lithium, the largest lithium company in the world, that will last for a three-year period dating to the end of 2024.
Tesla also <a href="https://www.benzinga.com/news/22/02/25655400/tesla-secures-5-year-lithium-supply-deal-starting-next-year-with-australias-liontown">signed </a>a deal with Liontown Resources, a leading Australian miner, to provide lithium to the electric vehicle company.
Back in 2020 at its Battery Day, Musk <a href="https://www.tesmanian.com/blogs/tesmanian-blog/tesla-may-enter-the-lithium-mining-business-elon-musk-hinted#:~:text=During%20Battery%20Day%20in%202020%2C%20Musk%20announced%20that%20Tesla%20had,and%20a%20solution%20was%20found.">announced </a>the company acquired the rights to a 10,000-acre lithium clay deposit in Nevada. The company has been relatively quiet on its plans for the area, but some have <a href="https://www.hotcars.com/where-does-tesla-get-its-lithium/">pointed </a>to it taking years to be built out.
Given the increased prices of lithium, Musk&rsquo;s comments and the increased competition for lithium for their electric vehicles, Tesla could be serious about making acquisitions in the lithium space to help with its own supply chain.
Related Link: <a href="https://www.benzinga.com/news/22/03/26230405/heres-how-much-the-cheapest-tesla-vehicle-is-now-after-price-increases">Here&#39;s How Much The Cheapest Tesla Vehicle Is Now After Price Increases&nbsp;</a>
Stocks to Watch: There are a handful of publicly traded lithium companies that could turn out to be acquisition targets by Tesla and other automotive companies to help with the supply chain.
Here are some of the largest publicly traded lithium related companies:
Livent Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lthm#NYSE">LTHM</a>)
Pilbara Minerals (OTC: <a class="ticker" href="https://www.benzinga.com/stock/pilbf#OTC">PILBF</a>)
Albemarle Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/alb#NYSE">ALB</a>)
Sociedad Quimica Y Minera De Chile SA (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/sqm#NYSE">SQM</a>)
Ganfeng Lithium Co Ltd (OTC: <a class="ticker" href="https://www.benzinga.com/stock/gnenf#OTC">GNENF</a>)
Piedmont Lithium (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/pll#NASDAQ">PLL</a>)
Lithium Americas Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lac#NYSE">LAC</a>)
Investors looking for a pure play option for exposure to lithium stocks can also consider the Global X Lithium &amp; Battery Tech ETF (ARCA:LIT).

GNENF

Hycroft Mining Holding Corporation - Class A Common Stock

HYMC

PILBF

Will Tesla Pull An AMC And Invest In Mining Companies? Here's What Elon Musk Suggested

On CNBC&rsquo;s &ldquo;<a href="https://www.cnbc.com/video/2022/02/07/final-trades-qorvo-dynatrace-coinbase-more.html">Halftime Report Final Trades</a>,&rdquo; Bryn Talkington of Requisite Capital Management named Global X Lithium &amp; Battery Tech ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lit#NYSE">LIT</a>) as her pick.
&ldquo;LIT is about 20% off its highs of $97. There&rsquo;s a structural demand supply imbalance in both lithium and batteries. It&rsquo;s an international play &hellip; good entry point into LIT,&rdquo; Talkington said.
Joseph Terranova of Virtus Investment Partners said he planned on buying <a href="https://www.benzinga.com/money/coinbase-alternative/">Coinbase</a> Global Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/coin#NASDAQ">COIN</a>) with a stop at $187.15, which is &ldquo;below the pivot range from Friday.&rdquo;
Joshua Brown of Ritholtz Wealth Management said Live Nation Entertainment, Inc&rsquo;s (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lyv#NYSE">LYV</a>) stock has &ldquo;held up really well.&rdquo;
Stephen Weiss of Short Hills Capital Partners named Qorvo Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/qrvo#NASDAQ">QRVO</a>) as his pick, while Jon Najarian cited Dynatrace Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dt#NYSE">DT</a>) as his.

Long Ideas

Media

COIN

QRVO

CNBC's Final Trades: Coinbase Global, Live Nation Entertainment, Qorvo And More

Rumors

Miner SQM Has Raised Expectation For '22 Lithium Demand Growth To 20-30%

CNBC&#39;s &quot;Fast Money Halftime Report&quot; panel focused on lithium stocks Thursday as they selected their&nbsp;top picks for 2022.
Market Rebellion co-founder Jon Najarian named&nbsp;QuantumScape Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/qs#NYSE">QS</a>) his top stock for 2022.
&quot;You just can&#39;t have enough lithium right now,&quot; Najarian said.
He noted that there are other viable stocks to buy in the lithium recycling space, but reaffirmed that QuantumScape is his top pick.
See Also:&nbsp;<a href="https://www.benzinga.com/news/21/11/24042906/quantumscape-insider-sold-over-1-8m-in-company-stock">Quantumscape Insider Sold Over $1.8M In Company Stock</a>
Requisite Capital Management&#39;s Bryn Talkington said she also thinks lithium stocks will outperform in 2022. Her top pick for 2022 is the&nbsp;lithium ETF Global X Lithium &amp; Battery Tech ETF (ARCA:LIT).&nbsp;
&quot;It&#39;s an ETF that does the full vertical from manufacturing to mining to battery production,&quot; Talkington said.
She noted&nbsp;the United Kingdom aims to get EVs to&nbsp;100% of all new vehicle sales by 2035.
&quot;If that happens in the U.K. alone, that would take three-quarters of the world&#39;s lithium supply,&quot; Talkington said. &quot;I think lithium is a long-term secular trend.&quot;
QS, LIT Price Action: QuantumScape was up 14.7% at $39.23 and the&nbsp;Global X Lithium &amp; Battery Tech ETF was up 4.12% at $96.36 at time of publication.
Photo:&nbsp;cintersimone&nbsp;from Pixabay.

Why QuantumScape And This Lithium ETF Are These Investors Top Picks For 2022

On CNBC&rsquo;s &quot;Halftime Report&quot; <a href="https://www.cnbc.com/video/2021/10/25/final-trades-illumina-jpmorgan-amd-qualcomm-more.html">final trades</a>,&nbsp;Amy Raskin of Chevy Chase Trust said that the acquisition noise around Illumina, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ilmn#NASDAQ">ILMN</a>) offers an opportunity to enter into a &ldquo;multi-decade grower.&rdquo;
Bryn Talkington of Requisite Capital Management cited&nbsp;Global X Lithium &amp; Battery Tech ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lit#NYSE">LIT</a>) as a top pick, saying&nbsp;it&#39;s a &ldquo;global diversified full vertical of lithium for the structural tailwind of EVs.&rdquo;
While Joe Terranova of Virtus Investment Partners said he was staying long on Advanced Micro Devices, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/amd#NASDAQ">AMD</a>), JPMorgan Chase &amp; Co. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) was the top pick of Robert Sechan of NewEdge Wealth.

ILMN

'Halftime Report' Final Trades From Oct. 25: Illumina, JPMorgan, And More

On <a href="https://www.cnbc.com/video/2021/09/09/final-trades-leslies-dicks-sporting-goods-matterport-more.html">CNBC&#39;s &quot;Fast Money Halftime Report,&quot;</a> Jon Najarian said he bought the September $17.50 calls in Matterport Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/mttr#NASDAQ">MTTR</a>). He noticed options traders are buying the September 17 expiration calls, all the way to the $20 strike.
Josh Brown said he has a long position in Leslie&#39;s Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/lesl#NASDAQ">LESL</a>). He thinks it is worth more than $28.
Bryn Talkington is a buyer of Global X Lithium &amp; Battery Tech ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lit#NYSE">LIT</a>).
Stephen Weiss added to his long position in Dicks Sporting Goods Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dks#NYSE">DKS</a>) on Thursday morning.

LESL

MTTR

'Fast Money Halftime Report' Picks For September 9

On <a href="https://www.cnbc.com/video/2021/08/20/final-trades-sl-green-salesforce-hilton-more.html">CNBC&#39;s &quot;Fast Money Halftime Report,&quot;</a> Bryn Talkington picked Global X Lithium &amp; Battery Tech ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lit#NYSE">LIT</a>) as her final trade.
Jenny Harrington likes SL Green Realty Corp (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/slg#NYSE">SLG</a>).
Rich Saperstein wants to buy salesforce.com, inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/crm#NYSE">CRM</a>).
Pete Najarian saw some very active buying in Hilton Hotels Corporation Common Stock (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/hlt#NYSE">HLT</a>). He is not in the trade yet, but he likes what he is seeing.

'Fast Money Halftime Report' Picks For August 20

Shares of Global X Lithium &amp; Battery Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LIT#NYSE">LIT</a>) saw some unusual options activity on Tuesday. Following the unusual option alert, the stock price moved down to $85.18. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: PUT</li>
<li>Expiration Date: 2021-08-20</li>
<li>Strike Price: $82.00</li>
<li>Volume: 506</li>
<li>Open Interest: 552</li>
</ul>
<h2>Three Indications Of Unusual Options Activity</h2>
Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
Another sign of unusual activity is the trading of a contract with an expiration date in the distant future. Usually, additional time until a contract expires allows more opportunity for it to reach its strike price and grow its time value. Time value is important to consider 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. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're 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. 
<h2>Using These Strategies To Trade Options</h2>
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 <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Understanding Global X Lithium & Battery Tech ETF's Unusual Options Activity

Global X Lithium &amp; Battery Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LIT#NYSE">LIT</a>) shares experienced unusual options activity on Friday. The stock price moved up to $85.94 following the option alert. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: PUT</li>
<li>Expiration Date: 2021-08-20</li>
<li>Strike Price: $87.00</li>
<li>Volume: 0</li>
<li>Open Interest: 1</li>
</ul>
<h2>Three Signs Of Unusual Options Activity</h2>
Extraordinarily large volume (compared to historical averages) is one indication of unusual options market activity. Volume refers to the total number of contracts traded over a given time period when discussing options market activity. The number of contracts that have been traded, but not yet closed by either counterparty, is called open interest. A contract cannot be considered closed until there exists both a buyer and seller for it. 
The trading of a contract with an expiration date in the distant future is another sign 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 with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs 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 because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're 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. 
<h2>Using These Options Strategies</h2>
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 <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

On Tuesday, shares of Global X Lithium &amp; Battery Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LIT#NYSE">LIT</a>) saw unusual options activity. After the option alert, the stock price moved down to $81.74. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: TRADE</li>
<li>Trade Type: PUT</li>
<li>Expiration Date: 2021-08-20</li>
<li>Strike Price: $84.00</li>
<li>Volume: 330</li>
<li>Open Interest: 335</li>
</ul>
<h2>Three Signs Of Unusual Options Activity</h2>
One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value 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. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Using These Strategies To Trade Options</h2>
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 <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Global X Lithium &amp; Battery Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LIT#NYSE">LIT</a>) shares experienced unusual options activity on Thursday. The stock price moved up to $82.73 following the option alert. 
<ul>
<li>Sentiment: BULLISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-12-17</li>
<li>Strike Price: $86.00</li>
<li>Volume: 801</li>
<li>Open Interest: 193</li>
</ul>
<h2>Three Signs Of Unusual Options Activity</h2>
One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.
The trading of a contract with an expiration date in the distant future is another sign 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 with a strike price far from the underlying price are also considered unusual because they are defined as being "out of the money". This occurs 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 because the underlying asset value is expected to change dramatically in the future, and the buyer or seller can take advantage of a greater profit margin. 
<h2>Understanding Sentiment</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
Although the activity is suggestive of these strategies, these observations are made without knowing the investor's true intentions when purchasing these options contracts. An observer cannot be sure if the bettor is playing the contract outright or if they're 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. 
<h2>Trading Options With These Strategies</h2>
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 <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Options

Unusual Options Activity Insight: Global X Lithium & Battery Tech ETF

Global X Lithium &amp; Battery Tech ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/LIT#NYSE">LIT</a>) shares experienced unusual options activity on Thursday. The stock price moved up to $80.28 following the option alert. 
<ul>
<li>Sentiment: BEARISH</li>
<li>Option Type: SWEEP</li>
<li>Trade Type: CALL</li>
<li>Expiration Date: 2021-07-16</li>
<li>Strike Price: $70.00</li>
<li>Volume: 212</li>
<li>Open Interest: 2344</li>
</ul>
<h2>Three Indications Of Unusual Options Activity</h2>
One way options market activity can be considered unusual is when volume is exceptionally higher than its historical average. The volume of options activity refers to the number of contracts traded over a given time period. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).
Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and reach its strike price. It is important to consider time value because it represents the difference between the strike price and the value of the underlying asset. 
"Out of the money" contracts are unusual because they are purchased with a strike price far from the underlying asset price. "Out of the money" occurs when the underlying price is under the strike price on a call option, or above the strike price on a put option. Buyers and sellers try to take advantage of a large profit margin in these instances because they are expecting the value of the underlying asset to change dramatically in the future. 
<h2>Bullish And Bearish Sentiments</h2>
Options are "bullish" when a call is purchased at/near ask price or a put is sold at/near bid price. Options are "bearish" when a call is sold at/near bid price or a put is bought at/near ask price. 
These observations are made without knowing the investor's true intent by purchasing these options contracts. The activity is suggestive of these strategies, but an observer cannot be sure if a bettor is playing the contract outright or if the options bettor is hedging a large underlying position in common stock. For the latter case, bullish options activity may be less meaningful than the exposure a large investor has on their short position in common stock.
<h2>Using These Strategies To Trade Options</h2>
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 <a href="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts" title="https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts">https://pro.benzinga.help/en/articles/1769505-how-do-i-understand-options-alerts</a>

Analyzing Global X Lithium & Battery Tech ETF's Unusual Options Activity

<a href="https://investorplace.com">InvestorPlace - Stock Market News, Stock Advice &amp; Trading Tips</a>
<a href="https://investorplace.com/industries/energy/renewable-energy/battery/">Battery stocks</a> may not be one of the most exciting opportunities. But with the world fighting to go green, demand is only expected to rise for these top battery stocks to buy.



Remember,&nbsp;batteries are essential for renewable energy.&nbsp;<a href="https://energy5.com/understanding-the-role-of-battery-storage-in-the-renewable-energy-transition#:~:text=By%20storing%20excess%20energy%20during,to%20grid%20stability%20and%20resilience.">As noted by Energy5.com</a>,&nbsp;&ldquo;By storing excess energy during periods of high production, battery storage systems enable a consistent and reliable supply of electricity, even when the sun isn&rsquo;t shining or the wind isn&rsquo;t blowing. This not only improves the overall efficiency of renewable energy but also contributes to grid stability and resilience.&rdquo;



We also have to consider the global battery market could be worth about $322.2 billion by 2030 from $112.9 billion in 2022,&nbsp;<a href="https://www.globenewswire.com/news-release/2023/05/25/2676319/0/en/Global-Battery-Market-to-Reach-322-2-Billion-by-2030.html">according to ResearchandMarkets</a>. In addition, the U.S. Department of Energy (DOE) announced&nbsp;<a href="https://www.recyclingtoday.com/news/doe-announces-30-million-in-electric-vehicle-battery-funding/">$30 million in funding</a>&nbsp;to support the creation of an electric vehicle battery supply chain. It also announced&nbsp;<a href="https://www.energy.gov/articles/biden-harris-administration-announces-35-billion-strengthen-domestic-battery-manufacturing#:~:text=WASHINGTON%2C%20D.C.%20%E2%80%94%20Today%2C%20two,batteries%20and%20battery%20materials%20nationwide.">$3.5 billion in funding for battery manufacturing</a>. All of which should help fuel further upside for battery stocks to buy, such as:



<h2>QuantumScape (QS)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2023/11/qs1600-1-300x169.png" alt="QuantumScape (QS) is an American company that develops solid state lithium metal batteries for electric cars."><div>Source: JHVEPhoto / Shutterstock.com</div></div>Keep an eye on beaten-down shares of&nbsp;battery stocks to buy, such as QuantumScape (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/QS#NYSE">QS</a>). After diving to a recent low of $5.54, QS is now at $6.13 and is slowly trending higher.



Helping,&nbsp;<a href="https://www.streetinsider.com/news.php?id=22785221&amp;classic=1">analysts at Baird raised their price target to $8 with a neutral rating</a>. They believe that new CEO Dr. Siva Sivaram could help the company achieve commercial scale production.&nbsp;



Even better, the company just starting shipping its Alpha-2 prototype battery cells. These,&nbsp;<a href="https://www.quantumscape.com/quantumscape-appoints-dr-siva-sivaram-as-ceo-to-lead-next-phase-of-growth-2/#:~:text=Alpha%2D2%20prototypes%20are%20a,shipping%20A0%20prototypes%20to%20customers.">according to Sivaram</a>&nbsp;are a &ldquo;significant milestone on the roadmap to deliver QSE-5, QuantumScape&rsquo;s first planned commercial product.&rdquo;&nbsp;



<a href="https://s29.q4cdn.com/884415011/files/doc_financials/2023/q4/QS-Shareholder-Letter-Q4-2023.pdf">He added</a>,&nbsp;&ldquo;We expect our transformation to continue in 2024, culminating in the integration of these improvements into our target first commercial product, the QSE-5 cell. Our goal is to begin low volume QSE-5 prototype production in 2024, with higher volumes targeted in 2025,&rdquo; as quoted in a shareholder letter.



Plus, according to the company, it has a liquidity buffer of $1.07 billion at the moment. That should provide the company with enough cash as it transitions from prototype to product.



<h2>Albemarle (ALB)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/05/alb1600a-300x169.jpg" alt="Albemarle (ALB) logo on a mobile phone screen"><div>Source: IgorGolovniov/Shutterstock.com</div></div>Keep an eye on rebounding shares of Albemarle (NYE:<a href="https://investorplace.com/stock-quotes/alb-stock-quote/">ALB</a>).



While lithium prices are still low, shares of ALB have been pushing higher. In fact, since plunging to a March low of $106.35, it&rsquo;s now back up to $131.69. From here, if ALB can break above current resistance, it could rally back to $140 near term. Sure, there are still plenty of bearish analyst ratings on the stock, but with the blood flowing in the streets, it&rsquo;s time to buy. Especially ahead of an eventual lithium price rebound.



Helping, analysts at&nbsp;<a href="https://www.tipranks.com/news/the-fly/albemarle-price-target-lowered-to-162-from-168-at-loop-capital">Loop Capital recently raised their price target on ALB to $168 from $144</a>&nbsp;with a buy rating. They added, &ldquo;The stock has bounced off its lows, owing to a commensurate move in spot lithium prices in China, and the nascent recovery in lithium prices could signal that the destocking downstream at cathode/cell/battery makers is reaching its conclusion,&rdquo;&nbsp;<a href="https://www.tipranks.com/news/the-fly/albemarle-price-target-raised-to-168-from-144-at-loop-capital">as quoted by TheFly.com</a>.



<h2>Global X Lithium ETF (LIT)</h2>



<div><img width="300" height="169" src="https://investorplace.com/wp-content/uploads/2020/05/lithium1600d-300x169.jpg" alt="Graphic of Lithium scientific symbol (Li) in the shape of a big white gear with construction equipment and mountain around it. favorite Lithium stocks"><div>Source: GrAl / Shutterstock.com</div></div>Or, if you&rsquo;d rather diversify with top battery-related stocks, check out the&nbsp;Global X Lithium ETF(NYSEARCA:<a href="https://investorplace.com/stock-quotes/lit-stock-quote/">LIT</a>). After plunging to a low of $39.26 in February, it&rsquo;s now consolidating at $45.73. From here, I&rsquo;d like to see it break out with a potential test of $52.



With an expense ratio of 0.75%, the ETF holds 40 stocks, investing in the full lithium cycle. That includes mining and refining through battery production. Some of its top holdings include Albemarle,&nbsp;TDK Corp. (OTCMKTS:<a href="https://investorplace.com/stock-quotes/ttdky-stock-quote/">TTDKY</a>),&nbsp;Pilbara Minerals&nbsp;(OTCMKTS:<a href="https://investorplace.com/stock-quotes/pilbf-stock-quote/">PILBF</a>), and Panasonic Holdings&nbsp;(OTCMKTS:<a href="https://investorplace.com/stock-quotes/pcrfy-stock-quote/">PCRFY</a>) to name a few.&nbsp;



Plus, the ETF trades at just under $46 a share, which means we can pick up 100 shares for about $4,600. That&rsquo;s far better than picking up 100 shares of just one of the LIT ETF holdings, such as ALB for about $13,169. Not only can we gain exposure to 40 top stocks, we can do it cheap.



With an eventual recovery in lithium prices, and rising battery demand, the LIT ETF could soar.



On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com&nbsp;<a href="https://investorplace.com/corporate/investorplace-publishing-guidelines/" target="_blank">Publishing Guidelines</a>.
<div>Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.</div><h3>More From InvestorPlace</h3>
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The post <a href="https://investorplace.com/2024/04/if-you-can-only-buy-one-battery-stock-in-april-it-better-be-one-of-these-3-names/">If You Can Only Buy One Battery Stock in April, It Better Be One of These 3 Names</a> appeared first on <a href="https://investorplace.com">InvestorPlace</a>.

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