$CANO call prices double

Bullish option traders are turning profits today in upside positions opened on Cano Health Inc (CANO).

On Aug. 17Market Rebellion’s Unusual Option Activity Service found that 3,000 September $5 calls were bought for $0.50 to $0.80 with shares at $4.74. above the contract’s existing open interest of 1,501.

Those calls have traded up to $1.40 so far today, about 2 times their purchase prices. The stock rose 29.75% in the same time, underscoring how options can far outpace gains in their underlying shares on a relative basis.

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.

CANO was last up on the day by 8.38% at $6.02.

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