Option bulls drive with gains in $FSR

Bullish option traders are driving big gains in Fisker Inc (FSR) today.

On Nov. 5, Market Rebellion’s Unusual Activity Service found that 4,000 Weekly $18 calls, expiring tomorrow, were bought for $0.71 to $1.30 above open interest of just 813 contracts with shares at $18.53.

Those calls have traded for as much as $4.10 this session, at least 3 times their purchase price. The stock rose 19.27% in the same time frame, illustrating the kind of leverage that can be achieved quickly 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.

FSR was last at $22.02, up 16.62% on the day.