$VFF bulls keep growing profits

Option traders are growing big gains on upside positions in Village Farms (VFF) today on positions opened last week.

On Nov. 17, Market Rebellion’s activity scanners flagged the purchase of 2,100 December $8 calls for $0.35 to $0.50 above the open interest of 796 contracts with shares at $6.76.

Those calls have sold for as much as $2.99 today, at least 5.5 times their purchase prices. The stock rose 61.54% in the same time period, a large move but nowhere near that of its options on a relative basis.

This marks the second winning trade in the name over the past week posted by Market Rebellion.

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.

VFF was last up 7.60% at $10.33. The hydroponic vegetable greenhouse business announced today that its cannabis subsidiary, Pure Sunfarms, entered into an agreement to supply a range of products to Shoppers Drug Mart.