$PLTR option bulls double money overnight

Option traders found quick profits on upside positions in Palantir (PLTR) today on positions opened yesterday.

Just yesterday morning on Sep. 16, Market Rebellion’s Unusual Activity programs detected the the purchase 23,000 September $29 calls, expiring today, for $0.05 to $0.16 with shares at $28.24. Open interest in the contract before the trade occurred was just 13,113 , showing that this was a new position.

Those calls sold for as much as $0.43 today, over 2 times their purchase prices. The stock rose 3.33% 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 by 2.10% at $29.23.