Options News
$FLIR bulls see big gains
Shares of FLIR Systems (FLIR) traded sharply higher this session, delivering big gains to upside option positions. On Dec. 23, Market Rebellion’s Unusual Activity scanners showed that 2,200 January $45 calls were purchased for $0.95 to $2.05, and 2,400 January $50 calls were purchased for $0.35 to $0.75, with shares at $42.73. Those calls traded for as […]
Shares of FLIR Systems (FLIR) traded sharply higher this session, delivering big gains to upside option positions.
On Dec. 23, Market Rebellion’s Unusual Activity scanners showed that 2,200 January $45 calls were purchased for $0.95 to $2.05, and 2,400 January $50 calls were purchased for $0.35 to $0.75, with shares at $42.73.
Those calls traded for as much as $9.30 and $4.50 this session, at least 4.5 and 6 times their respective purchase prices. The stock rose 27.40% in the same time frame, showing how quickly options can far outperform 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.
FLIR traded up to finish higher on the day by 19.19% at $52.24. Teledyne (TDY) announced this morning that it would acquire the thermal imaging company.