Options News
$EGO option bulls mine profits
Eldorado Gold Corp (EGO) is trading up today along with the price of gold, handing profits to bullish option positions. On Jan. 27, Market Rebellion’s Unusual Activity Service found that 3,000 February $9 calls were bought for $0.35 above the existing open interest of 645 contracts with shares at $8.67. Those calls traded for up to […]
On Jan. 27, Market Rebellion’s Unusual Activity Service found that 3,000 February $9 calls were bought for $0.35 above the existing open interest of 645 contracts with shares at $8.67.
Those calls traded for up to $1.27 today, more than 3.5 times their purchase price. The stock rose 18.57% 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.
EGO was up 3.39% to close at $10.37 today.