Bulls post astronomic gains in $I

Intelsat spiked higher today, handing exponential profits to upside option traders.

On April 17, Investitute’s proprietary programs flagged the purchase of 4,388 September $10 calls for $1.82 and $1.83 as part of a bullish roll with shares at $8.65. There was no open interest in the strike before the trade occurred, showing that it was a new position.

Those calls traded for $7.60 today, more than 4 times their purchase prices. The stock has rocketed 85% at the same time, a huge move but still one that is far below that of its options on a relative basis.

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.

I surged 12.1% to $16.30 today. The Luxembourg-based satellite operator is pushing for its bandwidth to be used in 5G broadband services in the United States.