$LCID call prices light up

Option traders are riding profits on upside positions in Lucid Group Inc (LCID) today.

On Sep. 4, Market Rebellion’s Unusual Activity Service found that 5,010 Weekly $23 calls, expiring this Friday, Sep. 24, were bought for $0.58 as part of a bullish roll above the existing open interest of 2,319 contracts with shares at $19.39.

Those calls traded for as much as $5.00 so far today, or over 3 times their purchase price. The stock rose 43.58% 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.

LCID was last at $26.59, up 10.47% on the session.