$CCIV bulls double money

Churchill Capital (CCIV) is delivering big gains on upside option positions expiring today, that were just opened this week.

Market Rebellion’s Unusual Activity Service identified bullish option activity on the name during two consecutive sessions this week.

–On Jun. 22, 3,700 25June $24 calls were purchased for $0.17 to $0.40 above open interest of 2,214 contracts with shares at $22.50.
–And then on Jun. 23, 16,000 25June $25 calls were purchased for $0.13 to $0.38 above open interest of 7,791 contracts with shares at 23.45.

Those calls sold for as much as $1.39 and $1.00 today, respectively, more than 2 times their purchase prices. The stock rose by as much as 14.89% in the same time frame, showing how options can far outperform moves in their underlying shares.

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.

CCIV was last up 3.28% at $25.66 in midday trade.