$SHLS option bulls triple money

Option traders racking up big profits today on bullish positions in Shoals Technologies Group Inc (SHLS).

On May 17, Market Rebellion’s Unusual Activity Service found that 4,000 June $15 calls were bought for $1.11 to $1.36 as part of a bullish roll above the existing open interest of 23 contracts with shares at $13.72.

Those calls have changed hands for as much as $4.10 today, over 3 times their purchase prices. The stock rose 36.22% at the same time, underscoring how quickly options can far outpace gains in their underlying shares.

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.

SHLS is currently up by 18.42% at $18.19.