Options News
$SPCE call prices keep rocketing higher
Option traders are racking up exponential profits today on bullish positions opened in Virgin Galactic Holdings (SPCE) less than one month ago. On Dec. 27, Market Rebellion’s Unusual Activity Service found that 3,000 January $11 calls were bought for $0.60 to $0.80 with shares at $10.77. This was clearly fresh buying, as open interest was […]
Option traders are racking up exponential profits today on bullish positions opened in Virgin Galactic Holdings (SPCE) less than one month ago.
On Dec. 27, Market Rebellion’s Unusual Activity Service found that 3,000 January $11 calls were bought for $0.60 to $0.80 with shares at $10.77. This was clearly fresh buying, as open interest was only 1,529 contracts before the activity appeared.
Market Rebellion co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”
Those calls traded for as much as $1.75 so far today, more than 2 times their purchase prices. The stock rose 18.2% at the same time, underscoring how quickly options can far outperform their underlying shares.
It is the second winning trade in the name to be posted on Market Rebellion over the past month.
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.
SPCE is currently up 5.44% trading for $12.70 this session. The spaceflight company, founded by Richard Branson, has kept rocketing higher since its lows made at the end of November.