$SOUN call prices rise

$SOUN call prices rise


Option traders have run up profits in SoundHound AI Inc (SOUN) calls.

On Feb. 9Market Rebellion’s Unusual Activity Service identified the the purchase of 6,000 February $2 calls for $0.15 to $0.35 with shares at $2.06. There was existing open interest of 2,417 in the contract, indicating that this was a new position.

Those calls have traded to $1.95 today, a 457.14% return, while the stock rose 88.83% in the same time period, an enormous move but one that was still dwarfed by the gain 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.

SOUN was last higher on the day by 73.79% to $3.92.

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