$SNAP bulls see more gains

Upside option positions opened in Snap (SNAP) towards the beginning of the month are paying big gains today for the second time this week.

On Jun. 2, Market Rebellion’s Unusual Activity Scanners found that 9,755 June $20.50 calls, expiring today, were bought for $0.62 as part of a bullish roll with shares at $19.77. This was clearly fresh buying, as open interest in the strike was only 615  contracts before that session began.

Those calls have traded for as much as $2.15 today, more than 3 times their purchase price. The stock rose 14.57% in the same time frame, a large move but nowhere near that of its options on a relative basis.

It is the second winning trade in the name to be posted on Market Rebellion this week.

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.

SNAP this session was last up 1.32% to $22.28, just shy of its new 52-Week high ($22.70) made earlier today.