$PLTR option bulls score

$PLTR option bulls score

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Option traders are scoring profits on upside positions in Palantir (PLTR) today.

On Feb. 20Market Rebellion’s Unusual Activity programs found the the purchase of 5,000 Weekly $22.50 calls, expiring Mar. 8, for $1.84 to $1.89 above the existing open interest of 447 with shares at $23.53.

Those calls have traded for as much as $4.08 today, a 115.87% return, while the stock rose 13.17% at the same time, showing how options can far outperform their underlying shares.

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.

PLTR was last up 11.73% at $26.62.

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