Big gains for $BBIG bulls

Vinco Ventures Inc (BBIG) traded up to a new multi-year-high this session, handing big gains to bullish option positions opened last week.

On Aug. 27, Market Rebellion’s Unusual Activity programs detected the the purchase 18,000 September $5 calls for $0.20 to $0.30 with shares at $3.35. Open interest in the contract before the trade occurred was just 6,817, showing that this was a new position.

Those calls traded for up to $5.10 today, at least 17 times their purchase prices. The stock rose 194.93% in the same time frame, showing how quickly options can far outpace gains in 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.

BBIG was up 33.21% to close at $7.06 after trading as high as $10.00 earlier in the session.