Options News
$BP call prices rise
BP plc (BP) shares are rising today, returning quick profits to upside positions opened at the beginning of this week. On Sep. 30, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 6,000 Weekly $32 calls, expiring Oct. 4, for $0.13 to $0.23 with shares at $31.34. This was clearly new positioning as the […]
On Sep. 30, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 6,000 Weekly $32 calls, expiring Oct. 4, for $0.13 to $0.23 with shares at $31.34. This was clearly new positioning as the volume was well above the existing open interest of 1,550 contracts, indicating fresh buying.
Those calls have traded traded for as much as $0.60 this session, a 160.87% return, while the stock rose 3.7% in the same time frame, illustrating the kind of leverage that can be achieved with options.
Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.
BP was up 0.28% to close at $32.46 today.