Exponential gains for $ARVL call buyers

Option traders are driving for exponential profits on upside positions opened in Arrival (ARVL).

On Apr. 14, Market Rebellion’s Unusual Activity Service found that 2,000 June $15 calls, expiring this Friday, were bought for $0.70 to $0.76 above open interest of just 1,712 contracts with shares at $13.34.

Those calls have traded for as much as $5.00 thus far today, at least 6.5 times their purchase prices. The stock rose 50% at the same time, underscoring how quickly 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.

ARVL was last up by 5.32% to $19.78 in late session trade.