Options News
$ON call prices double
On Semiconductor (ON) yielded fast gains on upside option positions today. On Nov. 27, Market Rebellion’s Unusual Activity Service flagged the purchase of 3,000 March $31 calls for $1.90 with shares at $28.76. This was clearly fresh buying, as open interest in the strike was only 81 contracts before the activity appeared. Those calls traded for as […]
On Semiconductor (ON) yielded fast gains on upside option positions today.
On Nov. 27, Market Rebellion’s Unusual Activity Service flagged the purchase of 3,000 March $31 calls for $1.90 with shares at $28.76. This was clearly fresh buying, as open interest in the strike was only 81 contracts before the activity appeared.
Those calls traded for as much as $3.83 far today, 2 times their purchase price. The stock rose 12.93% in the same time frame, showing how quickly options can far outpace gains in 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.
ON ended the session up 2.67% to $31.39 today. just off of its new 52-Week high of $32.60 made this session. The chip maker announced last night its new CEO, Hassane El-Khoury.