$RIOT call prices rise

Bullish option traders are making some fast coin in Riot Blockchain (RIOT) today.

The past two sessions, Jul. 18 and Jul. 19Market Rebellion’s Unusual Option Activity Service found that a collective 20,000 Weekly $7 calls, expiring this Friday, were bought for $0.08 to $0.37 with shares starting at $5.98. This was clearly fresh buying, as open interest in the contract was just 1,571 before the activity appeared on Monday.

Those calls have traded for as much as $0.70 today, about double their average purchase price. The stock rose 24.75% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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.

RIOT was last higher this session at $7.38, up 5.73% on the day.

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