$META call prices soar

Option traders are posting large gains today in bullish positions opened on Meta Platforms Inc (META).

On Jul. 1, Market Rebellion’s Unusual Activity Service found that 20,000 17July 650 calls were bought for $9.09 with shares at $619.00. This was clearly fresh buying, as open interest in the strike was just 10,161 contracts before the activity appeared.

Those calls changed hands for as much as $37.00 today, a 307.04% return, while the stock rose 9.3% in the same time frame, underscoring 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.

META finished up on the session by 5.97% at $669.21.