Option bulls triple money overnight in $BHC

Bullish call buyers are seeing big gains in Bausch Health (BHC) today.

Yesterday on Apr. 19, Market Rebellion’s Unusual Activity Service found that 3,500 Weekly $22 calls, expiring this Friday, were bought for $0.23 to $0.29 above the existing open interest of 237 contracts with shares at $21.43.

Those calls have traded for $1.12 today, at least 3.5 times their purchase prices. The stock rose 7.56% 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.

BHC was last up by 1.63% to $22.50 in afternoon trade.