$HOOD call prices climb overnight

$HOOD call prices climb overnight

by

Robinhood Markets Inc (HOOD) bulls are scoring big overnight profits in upside call positions today.

On Mar. 13Market Rebellion’s Unusual Activity Service found that 18,100 March $18 calls were bought for $0.06 to $0.23 above the existing open interest of 6,388 contracts with shares at $16.43.

Those calls have traded up to $1.30 today, a 465.22% return, while the stock rose 16.25% in the same time period, underscoring how options can far outperform their underlying shares.

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.

HOOD was last trading at $18.11, up 5.54% for the day.

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!