Options News
$UBER call prices triple
Option traders turned big profits again on upside positions in Uber (UBER) today after its earnings report. On Oct. 12, Market Rebellion’s Unusual Activity Service found that 8,000 Weekly $37.50 calls, expiring today, Nov. 6, were bought for $2.02 and $2.03 as part of a bullish spread with shares at $36.60. Open interest in the […]
Option traders turned big profits again on upside positions in Uber (UBER) today after its earnings report.
On Oct. 12, Market Rebellion’s Unusual Activity Service found that 8,000 Weekly $37.50 calls, expiring today, Nov. 6, were bought for $2.02 and $2.03 as part of a bullish spread with shares at $36.60. Open interest in the call strike was only 93 contracts before the trades occurred, indicating that this was new positioning.
Those calls traded for as much as $7.63 so far today, or over 3.5 times their purchase prices. The stock rose 23.33% in the same time frame, illustrating the kind of leverage that can be achieved with options.
It it the second winning trade in the name posted on Market Rebellion this week.
Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.
UBER was last at $44.99, up 7.5% on the session and setting new 52-Week highs. The ride-sharing service is trading higher this morning after its earnings report last night.