Options News
$ZEN bulls post overnight gains
Option traders have doubled their money in bullish positions on Zendesk (ZEN). On Jun. 23, Market Rebellion’s Unusual Option Activity Service found that 2,300 July $70 calls were bought for $0.70 to $0.75 with shares at $56.39. This was clearly fresh buying, as open interest in the strike was only 360 contracts before that session began. Those […]
Option traders have doubled their money in bullish positions on Zendesk (ZEN).
On Jun. 23, Market Rebellion’s Unusual Option Activity Service found that 2,300 July $70 calls were bought for $0.70 to $0.75 with shares at $56.39. This was clearly fresh buying, as open interest in the strike was only 360 contracts before that session began.
Those calls have traded up to $5.80 so far today, more than 7.5 times their purchase prices. The stock rose 31.23% in the same time, underscoring how options can far outpace gains in their underlying shares on a relative basis.
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.
ZEN was last up 28.49% at $74.46.
Ready to start trading? Try Unusual Option Activity Essential. Learn how you can follow the “smart money” with a fresh UOA trade idea each week – including technical levels so that you know how to manage each trade!
