$UPST call prices move up

$UPST call prices move up

by

Upstart Holdings Inc (UPST) is trading up on the day, lending large profits to bullish option positions.

On May. 15Market Rebellion’s Unusual Activity Service found that 9,000 Weekly $25 calls, expiring this Friday, were bought for $0.90 above the existing open interest of 1,746 contracts with shares at $23.57.

Those calls have traded for up to $4.65 so far today, a 416.67% return, while the stock rose 24.23% in the same time frame, showing how quickly options can far outpace gains in 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.

UPST was last up 25.51% at $28.93 in afternoon trade.

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