Rebel Hub Education
$RBLX call buyers triple their money

$RBLX call buyers triple their money

Bullish option positions opened in Roblox (RBLX) are returning big gains for upside traders as shares trade higher today

On Mar. 1Market Rebellion’s Unusual Activity Service detected the purchase of 6,800 Weekly $38 calls, expiring next Friday, for $1.07 to $1.28 with shares at $37.20. Open interest in the strike before the trade occurred was just 224 contracts, showing that this was a new position.

Those calls traded for as much as $4.15 today, over 3 times their purchase prices. The stock rose 12.69% 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.

RBLX was last higher by 6.35% today at $41.72.

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!

Read More

Subscribe to Rebel Roundup for your weekly digest of market highlights and free trading lessons.
We’re on a mission to empower retail traders with the tools they need to succeed.

Read Next

Join a growing community of traders with Market Rebellion

Join the thousands of users daily!