$BRCC option bulls brew gains

BRC Inc (BRCC) has been climbing this last week, yielding large gains on upside option positions.

On Apr. 4, Market Rebellion’s Unusual Activity Service found that 4,400 May $30 calls were bought for $0.75 to $1.97 against no existing open interest with shares at $25.64.

Those calls this session have traded up to $3.60, about double their average purchase price. The stock rose 23.24% at the same time, underscoring how quickly 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.

BRCC was last up by 7.81% to $31.75in afternoon trading.