$SPWR option bulls triple money

Option traders have scored exponential gains in upside bets on SunPower Corporation (SPWR).

On Sep 7Market Rebellion’s Unusual Option Activity Service found that 3,200 Weekly $27 calls, expiring this Friday, were bought for $0.16 to $0.23 with shares at $25.19. This was clearly fresh buying, as open interest in the contract was just 77 before the activity appeared.

Those calls traded up to $1.27 today, over 5.5 times their purchase prices. The stock rose 11.12% in the same time period, 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.

SPWR settled the session at $27.79, up 1.53% for 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!

ROUNDTABLE WEBINAR SPECIAL

Score 10% OFF ON ALL Annual Trading Services & Education Courses!

Give us a call at (888)809-8058 to explore the deal. Offer ends Friday!

Days
Hours
Minutes
Seconds