Options News
$ASHR option bulls triple money
Upside option positions in the Xtrackers Hvst CSI 300 China A-Shs ETF (ASHR) are rewarding bullish traders today. On May 24, Market Rebellion’s Unusual Option Activity Service found that 23,244 September $33 calls were bought for $0.58 with shares at $29.88. This was clearly fresh buying, as there was not any open interest in the […]
Upside option positions in the Xtrackers Hvst CSI 300 China A-Shs ETF (ASHR) are rewarding bullish traders today.
On May 24, Market Rebellion’s Unusual Option Activity Service found that 23,244 September $33 calls were bought for $0.58 with shares at $29.88. This was clearly fresh buying, as there was not any open interest in the contract before the activity appeared.
Those calls have traded for as much as $2.24 so far today, over 3.5 times their purchase price. The stock rose 13.69% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.
Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.
ASHR was last up 0.12% to $33.62 this afternoon.
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