This is through trading stock options, which offer one massive benefit, though at one similarly sized cost. By trading stock options, traders have access to leverage, so their potential gains (if they are right about the direction of the trade) can be amplified significantly. However, this benefit comes at the cost of timing since options have an expiration date, therefore making these views shorter-term in nature.
As recently as late February 2025, up to $7.2 million worth of call options were reported as bought for Super Micro Computer Inc. (NASDAQ: SMCI), where call options make a profit if the underlying stock price increases by or before a specific date which as mentioned makes the view shorter-term in nature. Taking leverage into account, this makes for a massive bet that Super Micro Computer stock might be headed higher in the coming weeks if not months.
