$SOFI bulls triple money in calls

SoFi (SOFI) rose sharply today, rewarding upside call positions opened last week.

On Feb. 23, Market Rebellion’s Unusual Activity Service found that 13,000 Weekly $10 calls, expiring this Friday, were bought for $0.96 to $1.03 with shares at $9.95. This was clearly fresh buying as open interest in the strike before the activity appeared was only 1,322.

Those calls traded for as much as $3.00 today, about triple their purchase prices. The stock rose 30.55% 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 $13.00 early in the session but has pulled back, last at $11.73, up 4.73% on the session.