$NKLA option bulls turn fast profits

$NKLA option bulls turn fast profits

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Nikola (NKLA) bulls are turning big gains on upside option positions today.

On Jun. 13, Market Rebellion’s Unusual Option Activity Service identified the purchase of 25,000 July $1 calls for $0.13 with shares at $0.89. The volume was well above the open interest of 19,464 contracts at the time, indicating that this was a new position.

Those calls have traded for as much as $0.90 today, a 592.31% return, while the stock rose 103.37% at the same time, showing how 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.

NKLA was last up by 26.51% to $1.37 in afternoon trade.

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!

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