Options News
Calls score fast gains in $CRC
Bullish option traders have more than doubled their money in California Resources. On Feb. 13, Investitute’s tracking systems detected the purchase of 10,000 March $21 calls for $1.20 as part of a bullish roll with shares at $18.83. Investitute co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.” Those calls […]
Bullish option traders have more than doubled their money in California Resources.
On Feb. 13, Investitute’s tracking systems detected the purchase of 10,000 March $21 calls for $1.20 as part of a bullish roll with shares at $18.83. Investitute co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”
Those calls traded for as much as $2.75 today, nearly 2.5 times their purchase price. The stock rose 17% in the same time frame, underscoring how quickly options can far outperform 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.
CRC was up 0.98% to $21.71 today. The oil and gas producer has rallied along with other energy names as the price of crude has risen to multi-month highs.