$COIN bulls earn fast profits

Coinbase (COIN) rose sharply today, rewarding upside call positions opened early in the session.

Just this morning, Market Rebellion’s Unusual Activity Service found that 3,200 Weekly $240 calls, expiring Jul. 2, were bought for $0.90 to $3.50 with shares at $226.88. This was clearly fresh buying as open interest in the strike before the activity appeared was only 1,312.

Those calls traded for as much as $10.40 today, at least 2.5 times their purchase prices. The stock rose 9.29% in the same time frame, a large move but nothing like that of its options 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.

COIN closed up by 9.86% at $246.69  this session.