$TSLA call prices rev up

Shares of Tesla (TSLA) are making new highs today, revving up big gains to upside option positions.

Just yesterday on Jan. 6, Market Rebellion’s Unusual Activity Scanners showed that 40,000 Weekly $800 calls, expiring this Friday, were bought for $1.50 to $4.00 above open interest of 19,905 contracts with shares of $750.33.

Those calls have traded up to $17.80 today, more than 4 times their purchase prices. The stock surged by 7.94% in the same time period, a large move but nowhere near that of its options on a relative basis.

This marks the second winning trade posted on Market Rebellion in the name in the last week.

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.

TSLA traded up to a new high of $812.79 this session and was last higher on the day by 6.73% at $806.89. RBC Capital upgraded shares to Sector Perform from Underperform this morning.