Options News
$RIOT option bulls make quick coin
Bullish option traders made some fast coin in Riot Blockchain (RIOT) today. On Jul. 23, Market Rebellion’s Unusual Activity programs detected the the purchase 9,300 Weekly $29 calls, expiring this Friday, for $1.35 to $2.20 with shares at $28.20. Open interest in the contract before the trade occurred was just 2,964, showing that this was a new […]
Bullish option traders made some fast coin in Riot Blockchain (RIOT) today.
On Jul. 23, Market Rebellion’s Unusual Activity programs detected the the purchase 9,300 Weekly $29 calls, expiring this Friday, for $1.35 to $2.20 with shares at $28.20. Open interest in the contract before the trade occurred was just 2,964, showing that this was a new position.
Those calls traded for as much as $5.95 today, more than 2.5 times their purchase prices. The stock rose 23.01% in the same time frame, illustrating the kind of leverage that can be achieved with options.
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 closed higher this session at $34.00, up 21% on the day. The Blockchain technology company gapped higher this morning after a strong weekend for Bitcoin’s price.