$SKIN call prices triple intraday

Option traders have run up glowing profits intraday in Beauty Helth (SKIN) calls.

Just this morning, on Aug. 13, Market Rebellion’s Unusual Activity programs detected the the purchase 2,300 August $22.50 calls or $0.20 to $0.40 with shares at $21.54. Open interest in the contract before the trade occurred was just 1,087, showing that this was a new position.

Those calls have traded up to $1.30 today, at least triple their purchase prices. The stock rose 8.17% in the same time period, 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.

SKIN was last up 11.25% at $22.95 this afternoon, trading as high as $23.40, a new all-time-high, earlier in the session after the beauty health company was mentioned positively on CNBC’s “Halftime Report.”