When considering a long position in a stock, investors usually consider buying shares in a company to express their views. However, they need to realize that there is a much more aggressive way to gain long exposure to a stock. This other way is through the options market, but there is, of course, a main caveat to participating in these products.
When buying options, investors need to correctly determine a stock's direction and the timing of the trade, or else risk losing 100% of the initial investment. Knowing this, when investors see unusual call options volume in any stock, the surge can be taken as a very strong view coming from a few investors willing to lose it all, as their confidence justifies the risk.
Today, three stocks have reported a spike in call option volume to show where the upside potential is being perceived in the markets today. These stocks are the SPDR Gold Shares (ARCA:GLD) as a way to play the rallies left in gold prices, then there is a financial sector play through shares of Robinhood Markets Inc. (NASDAQ: HOOD); finally, there seemed to be a breakout in interest for a healthcare sector view in Hims & Hers Health Inc. (NYSE: HIMS).
Traders Bet on Gold Reaching a New All-Time High
Throughout the year, gold has repeatedly made new all-time highs, but this time, traders think there is one more rally in the making for the precious metal. It might all have to do with where the new business cycle is taking ...
