Brazilian based digital banking platform Nu Holdings (NU) is up 62% over the past year. One trader sees further gains ahead for shares going into 2026.
That’s based on the January 2026 $17 calls. With 550 days until expiration, 25,163 contracts traded compared to a prior open interest of 264, for a 95-fold rise in volume on the trade. The buyer of the calls paid $1.67 to make the bullish bet.
Nu Holdings recently traded for about $13.25. Shares would need to rise by $2.75, or about 28%, for the option to move in-the-money.
Given that shares are in an uptrend and recently broke to a new 52-week high, such a move in over 18 months is likely.
Nu Holdings has performed well operationally. Revenues are up nearly 80% in the past year, and earnings are up 167%. If anything, the share price hasn’t appreciated enough relative to the company’s growth.
Action to take: Investors may like shares as a momentum trade here. There’s likely further upside if Nu Holdings can continue to grow its earnings. At present, shares do not pay a dividend.
For traders, the January 2026 $17 calls are well positioned for potential gains in the months ahead, and even into next year, if not early 2026. Traders can likely see high double-digit returns, but should look for signs of a reversal to take profits on any trade.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.