Call buyers take a ride with $RIVN

Call buyers take a ride with $RIVN

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Option bulls are being rewarded in upside option positions on Rivian Automotive Inc (RIVN) today.

On Jun. 1Market Rebellion’s Unusual Activity Service found that 15,400 July $17.50 calls were bought for $0.54 to $0.72 above the existing open interest of 12,754 contracts with shares at $14.25.

Those calls have traded for up to $8.25 today, a 1,045.83% return, while the stock rose 80.28% 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.

RIVN was up by 1.93% at $25.31.

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