$HOOD option bulls score massive profits

$HOOD option bulls score massive profits

by

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

On Dec. 4Market Rebellion’s Unusual Activity Service found that 7,000 Weekly $10.50 calls, expiring Dec. 8, were bought for $0.05 to $0.07 above the existing open interest of 3,135 contracts with shares at $9.56.

Those calls have traded up to $1.03, a 1,371.43% return, while the stock rose 19.67% 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 $11.30, up 7.31% 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!

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