$RIOT bulls mine for profits

It has taken just hours for bullish option traders to rack up big gains in Riot Blockchain (RIOT).

Just this morning on Nov. 16, Market Rebellion’s Unusual Option Activity Service identified the purchase of 9,400 November $5 calls expiring this Friday, Nov. 20, for $0.10 to $0.45 with shares at $4.75. This represented fresh buying, as volume was well above the strike’s previous open interest of 1,054 contracts.

Those calls traded for as much as $1.15 so far this session, or at least 2 times their purchase prices. The stock rose 25.26% in the same time frame, showing how quickly 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.

RIOT is trading higher this session, last at $5.67 up 38.29% on the day. The Blockchain technology company has risen along with the price of Bitcoin and other crypto assets.