Options News
$BP call buyers score
BP plc (BP) shares have been rising this week, returning big profits to upside option positions. On Nov. 26, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 10,000 February $31 calls for $0.75 to $0.76 with shares at $28.90. This was clearly new positioning as the volume was well above the existing open […]
On Nov. 26, Market Rebellion’s Unusual Activity tracking systems detected the purchase of 10,000 February $31 calls for $0.75 to $0.76 with shares at $28.90. This was clearly new positioning as the volume was well above the existing open interest of 4,021 contracts, indicating fresh buying.
Those calls have traded traded for as much as $3.55 this session, a 367.11% return, while the stock rose 19.41% in the same time frame, illustrating the kind of leverage that can be achieved with options.
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.
BP was last up 0.44% at $34.57 today.