Options News
$CNX call prices quadruple
CNX Resources ($CNX) turned huge gains for bullish option traders today. On Dec. 14, our Unusual Activity scanners identified the purchase of 5,500 January $12 calls expiring today for $0.50 to $0.55, as part of a bullish roll, above open interest of just 1,047 contracts with shares at $10.93. Those calls sold for $2.05 today, about […]
CNX Resources ($CNX) turned huge gains for bullish option traders today.
On Dec. 14, our Unusual Activity scanners identified the purchase of 5,500 January $12 calls expiring today for $0.50 to $0.55, as part of a bullish roll, above open interest of just 1,047 contracts with shares at $10.93.
Those calls sold for $2.05 today, about 4 times their purchase prices. The stock rose 28.36% in the same time frame, showing how quickly 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.
CNX rose 1.24% today to close at $13.83. The oil and gas producer has risen alongside the price of commodities in recent weeks.