While 2025 has gotten off to a rocky start for the stock market, one trader is buying hundreds of millions of dollars of LEAP calls looking for a big rally by 2027.
Before I dive into the big call buying I noted above, I wanted to explain what a LEAP option is and why this trader may be buying these calls.
LEAP stands for Long-term Equity Anticipation Security, which is an option whose expiration is more than a year out in time. Essentially, this is a normal call or put, but with more time until its expiration.
A trader typically buys a LEAP when they want longer-term exposure to a stock or index.
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Now let’s dive into this call buying, and please note all of these calls expire in June of 2027, and all of the trades below are positions ranging from $8-$15 million of capital at risk:
Buyer of 1,200 Microsoft (MSFT) June 440 Calls (exp. 2027) for $79 – Stock at 435
Buyer of 7,000 Advanced Micro Devices (AMD) June 105 Calls (exp. 2027) for $28 – stock at 99
Buyer of 2,000 ARM Holdings (ARM) June 120 Calls (exp. 2027) for $46 – Stock at 120
Buyer of 2,000 Broadcom (AVGO) June 120 Calls (exp. 2027) for $54 – Stock at 200
Buyer of 600 ASML (ASML) June 690 Calls (exp. 2027) for $160 – Stock at 682
Buyer of 400 Service Now (NOW) June 980 Calls (exp. 2027) for $240 – Stock at 974
Buyer of 1,000 Mastercard (MA) June 560 Calls (exp. 2027) for $103 – Stock at 560
Buyer of 1,100 United Health (UNH) June 400 Calls (exp. 2027) for $89.30 – Stock at 402
Buyer of 400 Service Now (NOW) June 980 Calls (exp. 2027) for $250 – Stock at 985
Buyer of 700 ASML (ASML) June 690 Calls (exp. 2027) for $167 – Stock at 686
Buyer of 3,400 Advanced Micro Devices (AMD) June 105 Calls (exp. 2027) for $29.5 – Stock at 100
Buyer of 3,000 Pinduoduo (PDD) June 105 Calls (exp. 2027) for $30.60 – Stock at 104
Buyer of 1,000 Vertex (VRTX) June 500 Calls (exp. 2027) for $125 – Stock at 499
Buyer of 2,500 Arm Holdings (ARM) June 115 Calls (exp. 2027) for $39.50 – Stock at 111
Buyer of 1,700 Microsoft (MSFT) June 390 Calls (exp. 2027) for $71.60 – Stock at 387
Buyer of 500 Eli Lilly (LLY) June 830 Calls (exp. 2027) for $210 – Stock at 867
Buyer of 2,000 Amazon (AMZN) June 180 Calls (exp. 2027) for $43.70 – Stock at 182
Buyer of 2,200 Google (GOOGL) June 155 Calls (exp. 2027) for $37 – Stock at 157
Essentially, this trader has bought well over a hundred million dollars of calls in market leaders, betting that these stocks will rise dramatically by June of 2027.
And if I liked the theme of these trades, but didn’t have the capital to follow into every trade, I might instead buy at-the-money calls in the SPY or the QQQ to get similar exposure. Here are a couple examples:
Buy the SPY December 565 Calls (exp. 12/17/2027) for $90
Or...
Buy the QQQ June 485 Calls (exp. 6/17/2027) for $86
Stepping back, it appears this big trader is bullish on the market, though doesn’t see a massive move happening in the coming weeks or months, but instead is anticipating a run at new all-time highs in the years to come. Let’s hope he/she is right!
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