$GOEV option bulls double money in minutes

Option traders are picking big profits on upside positions opened in Canoo (GOEV) less than thirty minutes ago.

Mere minutes ago, Market Rebellion’s Unusual Activity Service found that 6,000 June $10.50 calls, expiring this Friday, were bought for $0.20 to $0.55 above open interest of just 2,123 contracts with shares at $10.04.

Those calls have traded for as much as $1.32 thus far today, over 2 times their purchase prices. The stock rose 12.15% 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.

GOEV was last up by 13.95% to $10.78 in afternoon trade. The American manufacturer of electric vehicles is scheduled to host its Investor Relations Day on Jun. 17.