$SNAP call prices triple

$SNAP call prices triple


Bullish option traders are cashing in fast profits on Snap (SNAP) calls today.

On Feb. 2Market Rebellion’s Unusual Activity programs detected the the purchase 12,100 Weekly $11.50 calls, expiring this Friday, for $0.20 to $0.29 with shares at $10.82. The volume was well above the contract’s previous open interest of 3,031 which indicated that this was a new position.

Those calls traded for as much as $0.88 today, at least triple their purchase prices. The stock rose 12.01% in the same time frame, a large move but nowhere near that of its options on a relative basis.

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.

SNAP was up by 9.63% to close at $12.07 today.

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