$AMD option bulls triple their money

$AMD option bulls triple their money


Bullish option traders who opened upside call positions in Advanced Micro Devices (AMD) last week are making big gains today as shares climb.

On Feb. 28Market Rebellion’s Unusual Activity Service found that 2,000 March $82 calls were bought for $1.53 to $1.79 above open interest of 1,756 contracts with shares at $77.44.

Those calls have traded traded for as much as $6.45 this session, over 3.5 times their purchase prices. The stock rose 13.27% in the same time frame, illustrating the kind of leverage that can be achieved with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

AMD was last up by 2.05% to $87.12.

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