Quick gains for $INDI call buyers

Option traders are making quick gains on upside positions in indie Semiconductor Inc  (INDI) today.

Just yesterday on Sep. 21, Market Rebellion’s Unusual Activity Service found that 4,000 October $212.50 calls were bought for $0.22 to $0.48 above the existing open interest of 796 contracts with shares at $10.77.

Those calls traded for as much as $1.45 so far today, or over 3 times their purchase prices. The stock rose 7.89% in the same time frame, illustrating the kind of leverage that can be achieved 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.

INDI was last at $11.36, down 1.39% on the session after earlier trading as high as $11.73.