$ABBV call prices rise 14-fold overnight

Bullish option traders are turning large gains in AbbVie (ABBV) this session.

Yesterday on Apr. 6, Market Rebellion’s Unusual Activity scanners identified the purchase of 2,200 Weekly $172.50 calls, expiring tomorrow, for $0.13 to $0.17 with shares at $167.67. This was clearly a new position, as volume was clearly above the strike’s previous open interest of 148 contracts.

Those calls have sold for as much as $2.40 today, more than 14 times their purchase prices. The stock rose 4.09% at the same time, underscoring how quickly options can far outperform their underlying shares.

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.

ABBV was last higher on the session by 2.68% at $173.43.