$NOW call prices double in days

ServiceNow (NOW) is trading at a new all-time-high today, and upside call positions opened just days ago are profiting.

On Jun. 8, Market Rebellion’s Unusual Activity Service found that 3,800 Weekly $190 calls expiring Jun. 12 were bought for $5.20 to $6.50 with shares at $379.49. Volume was well above the strike’s open interest of 316 contracts, indicating that this was clearly fresh buying.

Those calls have traded up tor $14.00 today, more than double their purchase prices. The stock rose 5.76% in the same time frame, a large move but nothing like that of its options on a relative basis.

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.