$LAC call prices triple overnight

Bullish option traders are seeing fast profits today in Lithium Americas Corp (LAC).

Just yesterday, on Aug. 10, Market Rebellion’s Unusual Activity programs detected the the purchase 14,000 August $17.50 calls for $0.25 to $0.60 with shares at $16.14. Open interest in the contract before the trade occurred was just 8,495, showing that this was a new position.

Those calls have traded for $1.80 this session, at least 3 times their purchase prices. The stock rose 14.93% in the same time frame, a large move but nowhere near that of its options.

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.

LAC was last trading for $17.67, up 2.85% on the session.