Option traders that searched for fast profits in Alphabet Inc Class A (GOOGL) calls are finding them today.
Just this morning on Mar. 21, Market Rebellion’s Unusual Activity Service found that 12,800 Weekly $103 calls, expiring this Friday, were bought for $0.94 to $1.68 with shares at $101.41. This was clearly fresh buying, as open interest in the strike was just 9,304 contracts before the activity appeared.
Those calls traded for as much as $2.94 this session, over 2 times their average purchase price. The stock rose 3.61% in the same time frame, illustrating the kind of leverage that can be achieved with options.
Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.
GOOGL closed up this session by 3.66% at $104.92.
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