Option bulls $GRAB fast profits

Bullish option traders are racking up fast profits in Grab Holdings Ltd (GRAB) this session.

Yesterday on May 18, Market Rebellion’s Unusual Activity Service found that 10,000 Weekly $3 calls, expiring on Jun. 3, were bought for $0.24 as part of a bullish roll above the existing open interest of 35 contracts with shares at $2.70.

Those calls have traded up to $0.59 so far this session, over 2 times their purchase price. The stock rose 27.04% at the same time, showing 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.

GRAB was last trading at $3.40 in midday trade, up 34.19 % on the session.