$ABBV call prices rise 5-fold

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

On Dec. 10, Market Rebellion’s Unusual Activity scanners identified the purchase of 6,872 February $130 calls for $2.88 as part of a bullish roll with shares at $125.58. This was clearly a new position, as volume was clearly above the strike’s previous open interest of 2,657 contracts.

Those calls have sold for as much as $16.28 today, more than 5.5 times their purchase price. The stock rose 8.28% at the same time, underscoring how quickly options can far outperform their underlying shares.

This marks the second winning trade in the name to be posted on Market Rebellion this month.

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 lower on the session by 0.096% at $135.82.