$PLUG bulls power up with more profits

Plug Power (PLUG) is powering higher again today, and bullish option traders are taking profits.

On Dec. 18, Market Rebellion’s Unusual Activity Service identified the purchase of 4,500 January $36 calls for $2.03 to $2.10 with shares at $31.58. This was clearly fresh buying, as open interest in the strike was only 412 contracts before the activity appeared.

Those calls traded for as much as $30.00 today, nearly 15 times their purchase prices. The stock rose 108.96% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

This marks the second winning trade in the name posted by 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.

PLUG was up 22.33% to close at $66.02. The hydrogen fuel cell manufacturer signed a Memorandum of Understanding with Renault (RNSDF) to form a joint venture.