$GOOGL call buyers search for big profits

$GOOGL call buyers search for big profits


Option traders that searched for big profits in Alphabet Inc Class A (GOOGL) calls are finding them today.

On Jan. 9Market Rebellion’s Unusual Option Activity Service found that 7,500 Weekly $143 calls, expiring Jan. 26, were bought for $1.53 to $1.54 with shares at $139.82. This was clearly fresh buying, as open interest in the contract was just 839 before the activity appeared.

Those calls have changed hands for as much as $10.00 this session, a 549.35% return, while the stock rose 9.41% 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 was last up this session by 2.76% at $152.80.

Ready to start trading? Try Unusual Option Activity Essential. Learn how you can follow the “smart money” with a fresh UOA trade idea each week – including technical levels so that you know how to manage each trade!

Subscribe to Rebel Roundup for your weekly digest of market highlights and free trading lessons.
We’re on a mission to empower retail traders with the tools they need to succeed.

Join a growing community of traders with Market Rebellion

Join the thousands of users daily!
Start Your Day the Smart Money Way

Real-time Analysis

Interactive Chat Q&A
Professional Tactics