Bullish option positions opened in Netflix (NFLX) this week are streaming higher today as shares rise.
On Jul. 13, Market Rebellion’s Unusual Activity Service found that 5,500 July $180 calls, expiring today, were bought for $1.00 to $2.89 above the previous open interest of 2,718 with shares at $173.70.
Those calls have traded for as much as $9.00 today, at least 3 times their purchase prices. The stock rose 8.64% in the same time frame, illustrating the kind of leverage that can be achieved with options.
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 last up on the session by 7.45% at $187.80.
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