$MARA option bulls mine quick profits

$MARA option bulls mine quick profits

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Marathon Digital Holdings Inc (MARA) has been rallying sharply this week, returning fast gains on option positions opened yesterday.

On Oct. 23Market Rebellion’s Unusual Option Activity Service found that 7,600 Weekly $9 calls, expiring Nov. 10, were bought for $0.47 to $0.65 with shares at $7.89. This was clearly fresh buying, as open interest in the contract was just 805 before the activity appeared.

Those calls have traded for up $2.18 today, a 235.38% return, while the stock surged 35.49% in the same time period, an enormous move but one that was still dwarfed by the gain 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.

MARA was last at $9.62, up 9.89% on the session.

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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