Options News
$HOOD call buyers strike it big overnight
Robinhood Markets Inc (HOOD) bulls are scoring big overnight profits in upside call positions today. On Jun. 2, Market Rebellion’s Unusual Activity Service found that 4,250 Weekly $72 calls, expiring Jun. 13, were bought for $1.77 to $2.08 above the existing open interest of 801 contracts with shares at $67.10. Those calls have traded up to $4.00 […]
On Jun. 2, Market Rebellion’s Unusual Activity Service found that 4,250 Weekly $72 calls, expiring Jun. 13, were bought for $1.77 to $2.08 above the existing open interest of 801 contracts with shares at $67.10.
Those calls have traded up to $4.00 today, a 92.3% return, while the stock rose 8.18% in the same time period, underscoring how 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.
HOOD ended the session trading at $71.72, up 5.5% for the day.