Options News
$CRC call prices rocket 8-fold
Bullish option traders collected enormous profits 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 the strike was only 78 contracts before the trade occurred. Those calls […]
Bullish option traders collected enormous profits 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 the strike was only 78 contracts before the trade occurred.
Those calls sold for $9.31 today, nearly 8 times their purchase price. The stock soared 85.6% in the same time period, a huge move but still nowhere near 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.
CRC jumped 6.42% to $25.54 today. The oil and natural-gas producer has rallied with the price of crude at multi-year highs.