Fast profits for $CRWD option bulls

Crowdstrike (CRWD) is trading at a new all-time-high this session, handing fast profits to bullish option positions opened Tuesday.

On Aug. 24, Market Rebellion’s Unusual Activity programs detected the the purchase 3,000 Weekly $270 calls, expiring tomorrow, for $2.54 to $3.50 with shares at $262.34. Open interest in the contract before the trade occurred was just 655, showing that this was a new position.

Those calls have traded for up to $12.00 so far today, at least 3 times their purchase prices. The stock rose 7.34% 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.

CRWD was last up 4.16% to $281.24. The company joined the NASDAQ-100 Index this morning.