Options News
$CRC call buyers drill for profits
Bullish option traders more than doubled their money in California Resources today. On March 7, Investitute’s tracking systems detected the purchase of 10,000 May $16 calls in one print for $1.20 with shares at $13.64. This was clearly a new position, as open interest in strike was just 78 contracts. Those calls traded as highs […]
Bullish option traders more than doubled their money in California Resources today.
On March 7, Investitute’s tracking systems detected the purchase of 10,000 May $16 calls in one print for $1.20 with shares at $13.64. This was clearly a new position, as open interest in strike was just 78 contracts.
Those calls traded as highs as $3 today, 2.5 times their purchase price. The stock rose 28.4% in the same time frame, a large move but nowhere near that of its options.
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 jumped 7.75% to $17.24 today. The oil and natural-gas company has rallied recently with the price of crude.