$PLTR bulls find big gains

Option traders are found big gains on upside positions in Palantir (PLTR) today on positions opened toward the start of the month.

On Nov. 5, Market Rebellion’s activity scanners flagged the purchase of 3,000 December $14 calls for $0.50 to $0.65 above the open interest of 638 contracts with shares at $11.37.

Those calls have sold for as much as $15.47 today, at least 23 times their purchase prices. The stock rose 159.45% in the same time period, a large move but nowhere near that of its options on a relative basis.

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.

PLTR was last up 21.20% at $28.87. The big data analytics company’s stock has risen sharply since its recent IPO.