$BTBT bulls keep mining gains

Option traders are mining big gains on upside option positions today in Bit Digital Inc (BTBT).

On Aug. 2, Market Rebellion’s Unusual Activity programs detected the the purchase 7,000 August $12.50 calls for $1.30 to $1.65 with shares at $10.18. Open interest in the contract before the trade occurred was just 3,326, showing that this was a new position.

Those calls  traded for as much as $4.85 this session, at least about 3 times their purchase prices. The stock gained 58.55% at the same time, a large move but nowhere near that of its options on a relative basis.

This marks the second winning trade in the name posted on Market Rebellion this week.

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.

BTBT was higher at the close by 21.04% at $15.82.