Bulls make healthy gains in $BYND

Option traders more than tripled their money on bullish positions opened last week in Beyond Meat (BYND) today.

On June 11, Investitute’s tracking systems detected the purchase of 2,000 January $160 calls for $13.10 to $13.25 with shares at $131.21. Open interest in the strike before that session began was just 480 contracts, indicating that this was clearly fresh positioning.

Those calls traded as high as $45.50 this morning, nearly 3.5 times their purchase price. The stock rose 5.11% at the same time, illustrating the kind of leverage that can be achieved 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.

BYND was up to a new all-time-high of $201.88 this morning before pulling back throughout the session to close off by 0.041% to $169.89. The plant-based meat substitute producer made an announcement yesterday, unveiling a new ground beef replacement called Beyond Beef.