$WISH grants option bulls fast profits

Option traders are being granted fast profits in  ContextLogic (WISH) as shares extended higher this session.

Just this morning on Jun. 21, Market Rebellion’s Unusual Activity Service found that 5,000 Weekly $12.50 calls were bought for $0.78 to $1.05 above open interest of just 3,058 contracts with shares at $11.78.

Those calls sold for $2.24 this session, over 2 times their purchase prices. The stock rose 18% in the same time period, illustrating the kind of leverage that can be achieved with options.

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.

WISH closed the session at $13.50 up 18.42%.