$NVDA bulls double money overnight

Bullish option traders are seeing fast profits today in NVIDIA Corporation (NVDA).

Yesterday on Jun. 18Market Rebellion’s Unusual Option Activity Service found that 10,300 Weekly $170 calls, expiring this Friday, were bought for $1.70 to $2.27 with shares at $162.77. This was clearly fresh buying, as open interest in the contract was just 6,139 before the activity appeared.

Those calls have traded for as much as $4.65 this session, 2 times their purchase prices. The stock rose 5.1% at the same time, 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.

NVDA was last at $169.67 this afternoon, up 5.38% on the day.

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