$SPWR call prices soar 7-fold

Bullish option traders are basking in enormous profits from SunPower (SPWR).

On Sept. 29, Market Rebellion’s Unusual Activity Service identified the purchase of 5,000 October $12.50 calls for $0.67 to $0.82 with shares trading at $12.24. This was clearly fresh buying, as open interest in the strike was only 79 contracts before the session began.

Market Rebellion co-founder Jon Najarian cited the activity on his daily “3@3” show that afternoon.

Those calls traded for as much as $5.70 today, more than 7 times their average purchase price. Shares surged 48.12% in the same time frame, a huge move but one that still paled in comparison to that of its options on a relative basis.

$SPWR is up 11.27% to $17.37 in late afternoon trading. Piper Sandler initiated coverage of the solar-panel manufacturer this morning with an “overweight” rating and a $20 price target.