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Arm Holdings Sees Options Frenzy Amid Surge in Bets Stock Could Rally to $150

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Luzi Ann Santos wrote a column · Feb 12 13:50
Investors are piling on bullish wagers on $Arm Holdings (ARM.US)$ as the stock extends its meteoric rise that was driven by better-than-expected earnings for the company that designs chips used in almost all of the world's smartphones.


Call options that give holders the right to buy Arm stock at $150 by Feb. 16 jumped almost five-fold on Monday as the stock rallied a further 26%, almost doubling its value in the past five days. The price of the option that has 100 shares each, more than tripled to $22.50 per stock, tracking the gains in underlying security.
Arm Holdings Sees Options Frenzy Amid Surge in Bets Stock Could Rally to $150
Almost 42,000 contracts of such call options changed hands by 2:40 pm New York, making it the most-active option for Arm shares. That's a huge jump from the 6,870 contracts traded on Friday, when the stock closed at $115.21. Volume soared from zero on Feb. 7, when the stock was just at $77.
Even the bears are in retreat. The volume of put options that give holders the right to sell Arm at $130 climbed to more than 18,000 contracts, a jump of more than 100 times from Friday. The price of such puts fell to $6.97 from more than $17 on Friday.
Arm Holdings Sees Options Frenzy Amid Surge in Bets Stock Could Rally to $150
Disclaimer: Optionstrading entails significant risk and is not appropriate for all investors. Certain complex option strategy carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Option. This article is for information and illustrative purposes only, and is not a promotion of option trading or a recommendation of any of the specific option mentioned above.
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Moomoo Senior News and Community Manager
Former editor at Bloomberg, ex-commentary editor at Lazard. Posts aren’t investment advice. Views are just mine.
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