$MSFT option bulls score at highs

$MSFT option bulls score at highs


Option bulls are being rewarded today with big profits on upside positions in Microsoft (MSFT).

On Jun. 14Market Rebellion’s Unusual Activity Service found that 3,775 August $355 calls were bought for $8.10 above the existing open interest of 2,145 with shares at $338.98.

Those calls have traded for as much as $21.79 during this session, a 169.01% return, while the stock rose 8.18% in the same time frame, showing how options can far outperform their underlying shares 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.

MSFT was last at $365.01, up 5.58% on the session.

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