$TLRY bulls roll up profits

It took just over a week for upside call positions in Tilray (TLRY) to roll higher.

On Jan. 26, Market Rebellion’s Unusual Option Activity Service identified the purchase of 9,000 Weekly $20 calls, expiring this Friday, for $1.36 to $1.70 with shares at $18.73. This represented fresh buying, as volume was well above the strike’s previous open interest of 1,635 contracts.

Those calls traded for as much as $8.80 this session, or at least 5 times their purchase prices. The stock rallied 54.08% in the same time frame, showing how quickly options can far outperform 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.

TLRY closed the session up by 12.01% at $26.31, a new 52-Week closing high for the cannabis producer, which has risen alongside its peers today while reform regulation is discussed in D.C.