$PLUG option bulls triple money overnight

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

Just yesterday, on Oct. 28, Market Rebellion’s Unusual Activity programs detected the the purchase 11,900 Weekly $36 calls, expiring today, for $0.26 to $0.65 with shares at $34.82. Open interest in the contract before the trade occurred was just 9,690, showing that this was a new position.

Those calls traded for as much as $2.46 today, at least 3.5 times their purchase prices. The stock rose 10.51% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

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 3.13% to close at $38.27.