Bulls score big again in $OSTK

Option traders are racking up exponential gains in Overstock (OSTK) today for the second session in a row.

On July 8, Investitute’s tracking systems detected bullish activity in two strikes expiring at the end of this week with shares trading at $16.15:
–3,700 12July $15 calls were purchased for $0.55 to $1.40 above open interest of 869 contracts.
–3,500 12July $16 calls were bought for $0.40 to $1 above open interest of 849 contracts,

The 12July $15 calls have risen to $3.60 and the 12July 16s to $2.79 so far today, about 3 and 4 times their respective average purchase prices. The stock rose about 13.2% in the same time frame, underscoring how quickly options can far outpace gains in their underlying shares.

These were the second and third winning trades in the name posted on Investitute in two sessions.

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.

OSTK is up 8.77% to $18.66 in midday trading today. Shares are up sharply since the online retailer announced in late June that its subsidiary tZERO had launched a digital wallet and a mobile app for cryptocurrencies. Then Overstock announced yesterday that it has partnered with Atari Movie Producers “to tokenize the first major theatrical motion picture.”