$SOFI bulls earn fast profits

SoFi (SOFI) rose sharply today, rewarding upside call positions opened late in yesterday’s session.

Just yesterday afternoon, Market Rebellion’s Unusual Activity Service found that 7,500 Weekly $19 calls, expiring Jul. 2, were bought for $0.36 to $0.90 with shares at $17.80. This was clearly fresh buying as open interest in the strike before the activity appeared was only 2,069.

Those calls traded for as much as $2.49 today, at least double their purchase prices. The stock rose 17.53% in the same time frame, a large move but nothing like that of its options on a relative basis.

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.

SOFI traded as high as $20.99 early in the session but pulled back to close at $18.87, down 2.02% this session.