Options News
$PLUG bulls power up profits
Plug Power (PLUG) is powering higher today, and bullish option traders are taking profits. On Dec. 17, Market Rebellion’s Unusual Activity Service identified the purchase of 27,800 January $35 calls for $1.68 to $2.33 with shares at $29.78. This was clearly fresh buying, as open interest in the strike was only 8,137 contracts before the activity […]
Plug Power (PLUG) is powering higher today, and bullish option traders are taking profits.
On Dec. 17, Market Rebellion’s Unusual Activity Service identified the purchase of 27,800 January $35 calls for $1.68 to $2.33 with shares at $29.78. This was clearly fresh buying, as open interest in the strike was only 8,137 contracts before the activity appeared.
Those calls traded for as much as $12.40 today, over 5 times their purchase prices. The stock rose 58.73% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.
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.
PLUG was up 35.11% to close at $47.29. The hydrogen fuel cell manufacturer is to receive a $1.5 billion strategic investment from SK Group, announced after the close yesterday.