$AMTX bulls line up for gains

Aemetis (AMTX) is climbing today, and bulls are lining up for profits.

On Feb. 24, Market Rebellion’s Unusual Activity Service identified the purchase of 3,000 April $10 calls for $2.61 to $2.75 as part of a bullish spread with shares at $9.10. This was clearly a new position, as open interest in the strike was only 245 contracts before the trade occurred.

Those calls have changed hands for as much as $9.18 so far this session, at least 3 times their purchase prices. The stock rose 107.36% in the same time frame, a large move but far less relative to the options.

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.

AMTX has climbed 1.9% to $18.77 today. The advanced renewable fuels and biochemicals company announced this morning that is has received approval for a 32 mile extension to its existing Aemetis Biogas pipeline.