$BITF option buyers mine profits

$BITF option buyers mine profits

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Bullish option traders are mining big profits in Bitfarms Ltd (BITF) today.

On Nov. 24Market Rebellion’s Unusual Activity Service found that 5,200 December $1 calls were bought for $0.15 above the existing open interest of 435 contracts with shares at $1.09.

Those calls have traded up to $1.02, a 580% return, while the stock rose 88.07% in the same time period, underscoring how 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.

BITF was last up 10.57% at $1.94 today.

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