Options News
$CANO call prices triple
Bullish option traders are turning profits today in upside positions opened on Cano Health Inc (CANO). On Jun. 15, Market Rebellion’s Unusual Option Activity Service found that 5,200 July $5 calls were bought for $0.35 to $0.45 with shares at $4.70. This was clearly fresh buying, as open interest in the strike was only 654 contracts. Those […]
Bullish option traders are turning profits today in upside positions opened on Cano Health Inc (CANO).
On Jun. 15, Market Rebellion’s Unusual Option Activity Service found that 5,200 July $5 calls were bought for $0.35 to $0.45 with shares at $4.70. This was clearly fresh buying, as open interest in the strike was only 654 contracts.
Those calls have traded up to $1.20 so far today, 3 times their average purchase price. The stock rose 30.21% in the same time, underscoring how options can far outpace gains in their underlying shares on a relative basis.
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.
CANO was last down on the day by 2.77% at $5.96.
Ready to start trading? Try Unusual Option Activity Essential. Learn how you can follow the “smart money” with a fresh UOA trade idea each week – including technical levels so that you know how to manage each trade!