Bullish Amplitech Group Inc (AMPG) option traders are scoring a big win today in positions opened last Friday.
On May 15, Market Rebellion’s Unusual Activity Service found that 4,000 January 5 strike calls were bought for $0.50 to $0.60 with shares at $2.92. This was clearly fresh buying, as open interest in the strike was just 84 contracts before the activity appeared.
Those calls traded up to $1.90 today, a 216.67% return, while the stock rose 57.88% in the same time period, illustrating the kind of leverage that can be achieved with options.
Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.
AMPG this session was last higher by 15.29% at $4.60.
