More rocket fuel for bulls in $SPCE calls

Virgin Galactic Holdings (SPCE) rocketed higher again today, handing big profits to bullish option positions.

On Jan. 26, Market Rebellion’s Unusual Activity Service found that 2,500 Weekly $49 calls expiring this Friday, Jan. 29, were bought for $0.94 with shares at $41.13. This was clearly fresh buying, as there was no open interest before the activity appeared.

Those calls traded for as much as $12.36 this session, over 13 times their purchase price. The stock rose by as much as 44.93% at the same time, underscoring how quickly options can far outperform their underlying shares.

This marks the third winning trade in the name to be posted on Market Rebellion in the past week.

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.

SPCE was higher by 10.10% to close at $46.35 this session. The spaceflight company, founded by Richard Branson, lifted sharply today to set another new all-time high of $59.43.