Options News
$UPST calls lend big profits
Upstart Holdings Inc (UPST) is trading at new highs today, lending big profits to bullish option positions. This past Wednesday, Aug. 11, Market Rebellion’s Unusual Activity Service found that 6,200 Weekly $170 calls, expiring today, were bought for $4.70 to $8.40 above open interest of 2,893 contracts with shares at $160.90. Those calls traded for up […]
This past Wednesday, Aug. 11, Market Rebellion’s Unusual Activity Service found that 6,200 Weekly $170 calls, expiring today, were bought for $4.70 to $8.40 above open interest of 2,893 contracts with shares at $160.90.
Those calls traded for up to $34.80 today, at least 4 times their purchase prices. The stock rose 27.25% in the same time frame, showing how quickly options can far outpace gains in 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.
UPST ended the session up 14.13% at $203.29 today. The AI lending platform was upgraded to Overweight from Equal Weight this morning at Barclays, which also raised its price target on shares to $230 from $130.