$CANO option bulls triple money

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

On Jul. 28Market Rebellion’s Unusual Option Activity Service found that 5,000 October $6 calls were bought for $1.10 as part of a bullish spread and roll with shares at $6.08, above the contract’s existing open interest of 710.

Those calls traded up to $3.40 so far today, more than 3 times their purchase price. The stock rose 56.74% 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 finished up on the day by 32.17% at $8.34.

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