Option traders are posting large gains today in bullish positions opened on Meta Platforms Inc (META).
On Nov. 18, Market Rebellion’s Unusual Activity Service found that 3,015 Weekly $115 calls, expiring next Friday, Dec. 9, were bought for $3.73 to $3.74 as part of a bullish spread and roll with shares at $112.08. This was clearly fresh buying, as open interest in the strike was just 464 contracts before the activity appeared.
Those calls changed hands for as much as $7.23 today, nearly 2 times their purchase prices. The stock rose 8.11% 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 finished the session up by 1.98% at $120.44.
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