Options News
$PCG calls light up
Option traders doubled their money today in PG&E Corp. calls. On June 18, Investitute’s tracking systems detected the purchase of 1,500 July $46 calls for $0.70 with shares at $39.83. These was no open interest in the strike before the trades occurred, indicating that this buying was fresh interest. New buyers of those July $46 calls paid as […]
Option traders doubled their money today in PG&E Corp. calls.
On June 18, Investitute’s tracking systems detected the purchase of 1,500 July $46 calls for $0.70 with shares at $39.83. These was no open interest in the strike before the trades occurred, indicating that this buying was fresh interest.
New buyers of those July $46 calls paid as much as $1.74 today, more than double their initial purchase price. The stock rose 7.74% in the same time frame, underscoring how options can far outperform 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.
PCG was up 0.53% to $43.97 today. Shares of the utility company have been rebounding after their slide lower on news of investigations into the October 2017 California wild fires, citing electric power and distribution lines as the cause.