$FUV call prices spin higher

Bullish option traders’ calls are spinning higher today in Eugene, OR based fun-utility-vehicle maker Arcimoto (FUV).

On Oct. 14, Market Rebellion’s Unusual Activity Service flagged the purchase of 2,500 November $7.50 calls expiring today for $0.85 to $1.15 with shares at $7.06. This was clearly fresh buying, as open interest in the strike was only 1,118 contracts before that session began.

Those calls have traded up to $12.00 so far today, at least 10 times their purchase prices. The stock rose 177.62% in the same time, underscoring how options can far outpace gains in their underlying shares on a relative basis.

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.

FUV was last up 9.38% at $17.50, printing a new high this session along with other electric-vehicle makers, such as  ElectraMeccanica (SOLO).