Instacart (CART) Call Buyers Load up Gains

Call buyers are loading up gains today in bullish positions opened on Instacart (CART).

On Oct. 23, Market Rebellion’s Unusual Activity Service found that 3,500 30October 56 calls were bought for $0.13 to $0.15 with shares at $51.12.

Those calls have traded for up to $5.00 today, a 3,233.33% return, while the stock rose 18.13% in the same time frame, showing how quickly options can far outpace gains in 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.

CART was last lower on the day by 1.51% at $59.96.