$NVDA call buyers score at highs

Bullish option traders are seeing giant gains today in NVIDIA Corporation (NVDA).

On Mar. 8, Market Rebellion’s Unusual Option Activity Service found that 37,700 June $820 calls were bought for $208.55 to $209.58 as part of a bullish roll with shares at $960.89. This was clearly fresh buying, as open interest in the contract was just 1,951 before the activity appeared.

Those calls have traded for as much as $396.06 this session, an 88.98% return, while the stock rose 26.32% at the same time, 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.

NVDA closed at $1,224.40, up 5.16% on the day.