Bullish option positions opened in Netflix (NFLX) this week are streaming higher today as shares rise.
On May 8, Market Rebellion’s Unusual Activity Service found that 8,300 Weekly $330 calls, expiring May 12, were bought for $3.00 to $5.38 above the previous open interest of 2,068 with shares at $325.38.
Those calls traded for as much as $8.50 this session, a 58% return, while the stock gained 3.3% at the same time, a large move but nowhere near that of its options on a relative basis.
Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.
NFLX was up on the session by 0.28% to close at $332.14.
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