Bullish option traders are seeing big profits today in NVIDIA Corporation (NVDA).
On Jun. 13, Market Rebellion’s Unusual Option Activity Service found that 9,347 Weekly $425 calls, expiring Jun. 23, were bought for $5.05 as part of a bullish roll with shares at $403.41. This was clearly fresh buying, as open interest in the contract was just 2,547 before the activity appeared.
Those calls have traded for as much as $17.80 this session, a 252.48% return, while the stock rose 7.99% 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 closed at $426.92, up 0.091% on the day.
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!