Options News
$SNOW bulls see a flurry of profits
Snowflake Inc (SNOW) is trading up sharply on the day, handing a flurry of fast profits to bullish option positions. Less than 30 minutes into the day’s trade today, Mar. 16, Market Rebellion’s Unusual Activity Service found that 6,800 March $200 calls, expiring this Friday, were bought for $0.50 to $1.10 above open interest of 2,963 contracts […]
Less than 30 minutes into the day’s trade today, Mar. 16, Market Rebellion’s Unusual Activity Service found that 6,800 March $200 calls, expiring this Friday, were bought for $0.50 to $1.10 above open interest of 2,963 contracts with shares at $178.35.
Those calls traded for up to $5.90 today, at least 5 times their purchase prices. The stock rose 10.84% 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 up 15.84% to close at $197.84 today.