Options News
$LC call buyers take big profits
Bullish option traders have tripled their money in LendingClub. On June 8, Investitute’s market scanners identified the purchase of 2,500 October $4 calls for $0.25 and $0.27 with shares at $3.49. This was clearly fresh buying, as volume was well above the strike’s open interest of 2,098 contracts. Those calls sold for $0.74 this afternoon, […]
Bullish option traders have tripled their money in LendingClub.
On June 8, Investitute’s market scanners identified the purchase of 2,500 October $4 calls for $0.25 and $0.27 with shares at $3.49. This was clearly fresh buying, as volume was well above the strike’s open interest of 2,098 contracts.
Those calls sold for $0.74 this afternoon, triple their initial purchse price. The stock rallied 28.4% 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.
LC jumped 7.77% today to close at $4.44. The online loan marketplace was up sharply along with other financial names ahead of key earnings reports in the next week.