$BLNK call prices charge higher

Shares of Blink Charging (BLNK) are charging higher today, delivering big gains to upside option positions.

On Nov. 20, Market Rebellion’s Unusual Activity scanners showed that 5,000 December $25 calls expiring today were purchased for $1.80 to $3.30 with shares at $21.21. These were clearly new positions, as the open interest in that contract before the trade occurred was just 1,914.

Those calls traded for $14.62 today, over 4 times their purchase price. The stock surged 86.99% in the same time period, a huge move but still nowhere near that of its options on a relative basis.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost with the potential for significant leverage. They carry less risk than owning shares because the most that can be lost is the price of the options no matter how far the stock might fall.

BLNK finished the day higher by 3.21% at $36.34. The electric car maker is set to be included in the S&P 500 Index after the close today.