$CLOV call prices triple in minutes

Option traders are powering up fast profits in Clover Health Investments (CLOV) as shares charge higher this afternoon.

Less than a half an hour ago, Market Rebellion’s Unusual Options Activity scanners showed that 7,500 April $7.50 calls were purchased for $0.20 to $0.40 with shares at $7.23, above the previous open interest of just 4,786 contracts.

Those calls sold for $1.40 a few minutes ago, at least 3.5 times their purchase prices. The stock rose 18.4% in the same time period, illustrating the kind of leverage that can be achieved with options.

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.

CLOV was last higher on the session at $8.54, up 16.19%.