$TLRY calls spark gains

Bullish traders are sparking up gains in upside call positions in Tilray (TLRY) today.

On May 25, Market Rebellion’s Unusual Activity Service found that 17,900 Weekly $16 calls, expiring today, May 28, were bought for $0.27 to $0.68 with shares at $15.39. This was clearly fresh buying, as open interest in the strike was just 6,015 contracts before the activity appeared.

Those calls have traded for as much as $2.72 this session, or at least 3 times their purchase prices. The stock rallied 21.64% 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 this session was last up by 1.05% at $17.35.