$COIN call prices jingle

Coinbase (COIN) is rising sharply today, rewarding upside call positions.

On Aug. 2Market Rebellion’s Unusual Option Activity Service found that 6,000 Weekly $80 calls, expiring this Friday, were bought for $0.15 to $0.25 with shares at $64.90. This was clearly fresh buying, as open interest in the contract was just 2,093 before the activity appeared.

Those calls traded for as much as $36.90 today, at least 147 times their purchase prices. The stock rose 79.11% in the same time frame, a large move but nothing like that of its options 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.

COIN was last up by 23.82% at $100.06 this morning.

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