$COUP calls skyrocket 10-fold

Bullish option traders posted exponential gains in Coupa Software today.

Investitute’s tracking systems detected two notable upside trades in the same strike in the last two weeks:

–On Aug. 23, 1,250 September $80 calls were purchased in one print for $0.60 above open interest of 4 contracts with shares at $69.95.
–On Aug. 27, 2,500 September $80 calls were bought in one print for $1.15 above open interest of 1,338 contracts with shares at $70.92.

Those calls traded for $6.10 this morning, 10 times their initial purchase price. The stock rose 20.74% in the same time frame, underscoring how options can far outperform 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.

COUP jumped 6.78% to $76.88 today. The cloud-based budgeting company beat earnings estimates and raised its outlook after the market closed yesterday.