FUBO's Unusual Options Activity: 2700% In One Day?

FUBO's Unusual Options Activity: 2700% In One Day? ...

Market Rebellions Unusual Options Activity service alerted subscribers to a giant call option trade in (FUBO) today, 20 minutes after the opening bell.

The Trade

For a total trade cost of roughly $441K, $5-strike call options with four days to expiration were purchased out-of-the-money for between $0.12 and $0.30.

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FUBO shares rose as much as 83% immediately after the trade, ranging from as little as $0.12 ($12) to $3.15 ($315), a gain of 2,728% at the FUBOs highest point of the day.

This trader's $441K bet at one point today was worth as much as $6,615,000 and is currently worth $3,045,000 (if the trader didnt sell).

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The Catalyst

The FUBO story one of a cash-burning small-cap company with no P/E ratio today was hardly changed. However, the event did not result in any significant news about the company.

FUBOs today are likely to be the result of a short squeeze, which forces short sellers of the stock to pay a loss, thus driving up the price (especially in small-cap, low-float companies where there are few shares up for grabs).

FUBO has been squeezed for the first time this month, climbing more than 150%. The stock also rallied in late 2020 and early 2021 (where it rose from $9 to $48 in a short period of time) before returning to eEarth.

The Unusual Options Activity has been on a roll lately.

Whatever the option buyer was, he chose a brilliant candidate. These options multiplied more (and faster) than the (TWTR) options we identified prior to Elon Musk's Twitter takeover. And trades like these are becoming more and more frequent as smart money begins to hone-in on these likely short squeeze candidates.

Market Rebellion issued a similar unusual options activity purchase in the highly shorted genomics company Invitae (NVTA). With the price of Invitae trading at only $2.78, a buyer began picking up thousands of the far-out-of-the-money $5 calls, paying as little as $0.05 per contract. Within the same day, shares of (NVTA) gained more than 200% following the purchase, transforming a few thousand dollars into $1.8 million.

We follow the smart money because of trades like these.

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