Call buyers drive more gains in $TSLA

Shares of Tesla (TSLA) are revving again  today, delivering more big gains to upside option positions.

On Jun. 23, Market Rebellion’s Unusual Activity Service found that 40,000 Weekly $660 calls, expiring tomorrow, were bought for $3.60 to $8.46 above open interest of just 10,081 contracts with shares at $638.77.

Those calls have traded up to $38.68 today, well over 4.5 times their purchase prices. The stock surged by 9.26% in the same time period, a large move but nowhere near that of its options on a relative basis.

This marks the second winning trade in the name to be posted on Market Rebellion in as many sessions.

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.

TSLA closed the day up by 3.54% at $679.82.