$FUBO option bulls watch fast profits

Option traders are watching fast profits in upside option positions that were opened on Fubotv Inc (FUBO) this morning.

Just hours ago, on Aug. 16Market Rebellion’s Unusual Option Activity Service found that 21,500 August $5 calls were bought for $0.12 to $0.30 with shares at $4.40. above the contract’s existing open interest of 7,154.

Those calls have traded for as much as $3.15 this session, over 10 times their purchase prices. The stock gained 82.95% at the same time, a large move but nowhere near 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.

FUBO was last higher on the day by 45.95% at $6.40.

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