Options News
$SSTK bulls quadruple their money
Option traders posted huge gains in Shutterstock today. On Feb. 12, Investitute’s market scanners identified the purchase of 2,000 March $50 calls in one print for $1.05 with shares at $44.19. This was clearly a new position, as open interest in the strike was a mere 19 contracts before that session began. Those calls traded […]
Option traders posted huge gains in Shutterstock today.
On Feb. 12, Investitute’s market scanners identified the purchase of 2,000 March $50 calls in one print for $1.05 with shares at $44.19. This was clearly a new position, as open interest in the strike was a mere 19 contracts before that session began.
Those calls traded as high as $4.75 today, 4.5 times their purchase price. The stock rose 16.7% in the same time frame, underscoring how options can far outperform 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.
SSTK was up 2.55% to $51.57 today. Deutsche Bank raised its price target on the photography company to $43 from $36 last Friday after it posted quarterly results.