$APO call prices soar 3-fold

Option traders have turned large profits on bullish positions opened in Apollo Global Management (APO) just two months ago.

On Oct. 3, Market Rebellion’s Unusual Activity Service detected the purchase of 2,500 December $38 calls in one print for $1.50 above open interest of 1,829 contracts with shares at $35.93.

Those calls are marked for $5.60 currently, more than 3.5 times their purchase price. The stock rose 21.32% in the same time frame, underscoring how 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.

APO is currently trading for $43.59 this morning, up 1.8% on the session.