$BKKT call prices skyrocket

Bullish option traders have run up exponential gains in Bakkt Holdings Inc (BKKT) today.

On Oct. 22, Market Rebellion’s Unusual Activity Service found that 2,000 December $12 calls were bought for $0.25 to $0.40 above open interest of just 905 contracts with shares at $8.34.

Those calls traded for as much as $23.40 this session, over 58 times their purchase prices. The stock rose 326.02% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

BKKT closed today at $23.78, lower by 22.03% on the session.