$FREY option bulls charge up profits

Option traders are charging up profits today on bullish positions opened in FREYR Battery SA (FREY).

On Jan. 13, Market Rebellion’s Unusual Activity Service found that 5,000 April $11 calls were bought as part of a complex bullish spread for $1.00 above the existing open interest of 510 with shares at $9.50.

Those calls have traded for up to $1.95 today, almost 2 times their purchase price. The stock rose 36% in the same time frame, 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.

FREY in late session trading is off 5.9% at $12.37 after hitting a new year-to-date high of $13.54 earlier in the morning.