Options News
$GOOGL call buyers search for big profits
Option traders that searched for big profits in Alphabet Inc Class A (GOOGL) calls are finding them today. On Jan. 9, Market Rebellion’s Unusual Option Activity Service found that 7,500 Weekly $143 calls, expiring Jan. 26, were bought for $1.53 to $1.54 with shares at $139.82. This was clearly fresh buying, as open interest in the […]
Option traders that searched for big profits in Alphabet Inc Class A (GOOGL) calls are finding them today.
On Jan. 9, Market Rebellion’s Unusual Option Activity Service found that 7,500 Weekly $143 calls, expiring Jan. 26, were bought for $1.53 to $1.54 with shares at $139.82. This was clearly fresh buying, as open interest in the contract was just 839 before the activity appeared.
Those calls have changed hands for as much as $10.00 this session, a 549.35% return, while the stock rose 9.41% in the same time frame, illustrating the kind of leverage that can be achieved with options.
Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.
GOOGL was last up this session by 2.76% at $152.80.
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