Bulls find profits with $SOS

SOS Limited (SOS) is surging to fresh multi-year highs today, turning exponential gains on bullish option positions opened last week.

On Feb. 11, Market Rebellion’s Unusual Option Activity Service identified the purchase of 15,000 January *2023* $5 calls for $4.38 to $4.48 as part of a bullish roll with shares at $5.48. This represented fresh buying, as that volume was well above the strike’s previous open interest of just 198 contracts.

Those calls this morning have traded for $12.50, more than 2.5 times their purchase prices. The stock rose 166.06% in the same time period, showing how options can far outpace gains in their underlying shares.

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.

SOS was last higher on the day by 14.02% at $13.51. The company, whose operations include cloud based crypto mining, has recently risen sharply alongside the price of crypto assets.