Call buyers buzz for profits in $BMBL

Bullish option traders are buzzing with profits on upside positions in Bumble Inc (BMBL).

On Mar. 8, Market Rebellion’s Unusual Activity Service found that 5,000 April $22.50 calls were bought as part of a bullish spread for $0.78 above the existing open interest of 3,174 contracts with shares at $16.50.

Those calls have traded for as much as $6.76 this session, over 8.5 times their purchase prices. The stock spiked 73.21% in the same time period, a large move but nowhere near that of its options on a relative basis.

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.

BMBL was up 13.46% to close at $29.00 today.