Bulls charged up with Tesla at highs

Upside option positions saw electric gains as Tesla hit all-time highs today.

Back on Feb. 28, Investitute’s proprietary programs identified the purchase of 5,000 September 300 calls for $9.75 as part of a bullish roll with shares at $249.76. Volume was well above the strike’s open interest, showing that this was a new position.

Today those calls traded up to $49.97, representing a profit of more than 400 percent. The stock gained about 34.4 percent in the same period, an impressive gain but far less than that of the options.

Long calls lock in the price where the 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.

TSLA ended today at $335.10, up 3.06 percent, after reaching a lifetime high of $336.28 a few minutes before the close.