$PRCH call prices quadruple

Bullish option traders are making big gains in Porch Group Inc (PRCH) today.

On Oct. 12, Market Rebellion’s Unusual Activity Service found that 2,900 December $20 calls were bought for $0.75 to $0.85 above open interest of just 960 contracts with shares at $15.62.

Those calls traded for as much as $4.30 this session, at least 4 times their purchase prices. The stock rose 51.28% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

Long calls lock in the price where a 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.

PRCH finished at $23.50, up 3.16% on the day.