$CCIV bulls score fast profits

Churchill Capital (CCIV) is delivering big gains this afternoon on upside option positions that were just opened this morning.

Only this morning, Market Rebellion’s Unusual Activity Service found that 11,000 Weekly $28 calls, expiring this Friday, were bought for $0.13 to $0.39 above open interest of just 7,115 contracts with shares at $25.80.

Those calls traded up to $1.43 this afternoon, more than 3.5 times their purchase prices. The stock rose 11.94% at the same time, showing how options can quickly outperform their underlying shares by a wide margin.

This marks the fourth winning trade in the name to be posted on Market Rebellion this month.

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 up 9.42% to close at $28.82 today.