Option bulls score quick in $NVDA

Bullish option traders are racking up fast profits today in Nvidia (NVDA).

On Jun. 2, Market Rebellion’s Unusual Activity Service found that 13,000 Weekly $660 calls, expiring today, were bought for $5.10 to $9.70 with shares at $650.92. This was clearly fresh buying, as open interest in the strike was just 4,390 contracts before the activity appeared.

Those calls have traded for as much as $35.07 so far this morning, at least 3.5 times their purchase prices. The stock rose 6.63% 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 was last at $694.05, up 15.26 % on the day in early trade.