$SHPW option bulls quadruple money in hours

Bullish option positions opened this morning in Shapeways Holdings Inc (SHPW) are paying off only hours later.

This morning, on Oct. 20, Market Rebellion’s Unusual Activity Service found that 4,000 November $7.50 calls were bought for $0.70 against no open interest with shares at $7.45.

Those calls traded for as much as $3.10 today, over 4 times their purchase price. The stock rose 35.16% at the same time, underscoring how quickly options can far outperform 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.

SHPW was last higher on the day by 31.19% to $9.38.