Call prices soar 4-fold in $SNAP

Bullish options traders logged exponential gains in Snap for the second time in a week.

On Jan. 15, Investitute’s market scanners identified the purchase of 2,500 July $9 calls for $0.37 as part of a bullish spread with shares at $6.48. This was clearly a new position, as open interest in the strike was only 484 contracts before that session began.

Those calls sold for as much as $1.47 today, about 4 times their purchase price. The stock surged 41.82% in the same time period, a huge move but still nowhere near that of its options on a relative basis. This follows another winning trade in the name posted on Investitute on Feb. 6.

SNAP was up 3.07% to $9.07 today. The heavily shorted social-media stock gapped up from $7 on Feb. 6 after topping earnings and usage estimates. Investitute co-founder Jon Najarian cited unusual call activity in the name at that time on CNBC’s “Halftime Report.”