$TIGR call prices roar higher

Bullish option traders saw a roar of profits today in UP Fintech Holding (TIGR).

On Jan. 12, Market Rebellion’s Unusual Activity Service identified the purchase of 2,900 February $15 calls for $0.70 to $1.50 with shares at $10.60. Open interest in the strike was a mere 2,224 contracts before the trade occurred, showing that this was a new position.

Those calls traded for as much as $7.33 so far today, at least 4.5 times their purchase prices. The stock rose by as much as 104.53% in the same time frame, underscoring how quickly 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.

TIGR opened sharply higher to a new high of $21.99 this morning and was last up by 7.97% at $20.19 in afternoon trade. Kerrisdale noted this morning that it was long the “Robinhood of China” brokerage.