Call prices $SNAP higher

Snap (SNAP) has been on quite a tear this month, and bullish option traders are cashing in again today.

On Jun. 17, Market Rebellion’s Unusual Activity Scanners found that 3,950 Weekly $23.50 calls, expiring Jul. 2, were bought for $0.20 to $0.22  with shares at $21.37. This was clearly fresh buying, as open interest in the strike was only 504 contracts before that session began.

Those calls have traded for as much as $1.13 today, more than 5 times their purchase prices. The stock rose 13.24% in the same time frame, a large move but nowhere near that of its options on a relative basis.

It is the fourth winning trade in the name to be posted on Market Rebellion this month.

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.

SNAP this session was last up 1.97% to $24.12, just shy of its new 52-Week high ($24.20) made earlier today.