Options News
$SNOW call buyers score
Snowflake Inc (SNOW) is trading up sharply on the day, handing a flurry of fast profits to bullish option positions. On Jun. 23, Market Rebellion’s Unusual Option Activity Service found that 8,300 Weekly $140 calls, expiring today, were bought for $1.35 to $4.10 with shares at $135.62. This was clearly fresh buying, as open interest in the strike […]
On Jun. 23, Market Rebellion’s Unusual Option Activity Service found that 8,300 Weekly $140 calls, expiring today, were bought for $1.35 to $4.10 with shares at $135.62. This was clearly fresh buying, as open interest in the strike was only 644 contracts before that session began.
Those calls traded for up to $11.20 today, at least 2.5 times their purchase prices. The stock rose 11.47% 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.
SNOW was last up 5.91% at $151.52.
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