$FTCH option bulls double money overnight

Bullish option traders are posting solid gains today on upside positions opened in Farfetch (FTCH) yesterday.

Yesterday, on May 26, Market Rebellion’s Unusual Activity Service found that 10,000 June $9 calls were bought for $0.65 to $0.66 above open interest of just 705 contracts with shares at $7.52.

Those calls have traded up to $1.73 today, over 2.5 times their purchase prices. The stock rose 33.78% in the same time frame, illustrating the kind of leverage that can be achieved through 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.

FTCH was last at $9.96, higher by 29.62%.