Options News
$NLOK call prices double
Bullish option traders are ringing up big profits as NortonLifeLock (NLOK) reaches a new 52-Week high. On Dec. 2, Market Rebellion’s Unusual Option Activity Service detected the purchase of 37,950 March $25 calls for $1.28, as part of a bullish roll, with shares at $24.97. This was clearly fresh buying, as open interest in the strike was […]
Bullish option traders are ringing up big profits as NortonLifeLock (NLOK) reaches a new 52-Week high.
On Dec. 2, Market Rebellion’s Unusual Option Activity Service detected the purchase of 37,950 March $25 calls for $1.28, as part of a bullish roll, with shares at $24.97. This was clearly fresh buying, as open interest in the strike was just 981 contracts before that session began.
Those calls traded for $2.50 this morning, more than 2 times their purchase price. The stock rose 7.09% in the same time frame, a large move but nowhere near that of its 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.
NLOK reached a fresh 52-Week high of $26.77 earlier this morning, and last traded for $26.69, up 3.33% on the session. The cybersecurity software company, previously known as Symantec, was upgraded to Overweight from Equal Weight with a $32 price target by Barclays this morning.