Option traders are posting large gains today in bullish positions opened on Meta Platforms Inc (META).
On Nov. 15, Market Rebellion’s Unusual Activity Service found that 11,000 March $150 calls were bought for $4.60 to $4.73 as part of a bullish spread and roll with shares at $118.18. This was clearly fresh buying, as open interest in the strike was just 6,887 contracts before the activity appeared.
Those calls changed hands for as much as $48.00 today, more than 10 times their purchase prices. The stock rose 66.25% in the same time frame, underscoring how quickly 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.
META was last up on the session by 22.84% at $188.09.
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!