$TSLA call prices triple overnight

Shares of Tesla (TSLA) have kept rocketing higher, delivering significant gains to upside option positions opened just yesterday.

Yesterday, on Feb. 18, Market Rebellion’s Unusual Activity scanners showed that 4,400 Weekly $1,000 calls expiring on Feb. 28 were purchased for $8.50 to $14.00 with shares at $835.99. These were clearly new positions, as open interest in that contract was just 1,711 before the trade occurred.

Those calls have traded for as much as $42.65 today, at least 3 times their purchase prices. The stock surged 12.95% in the same time period, a huge move but still nowhere near that of its options on a relative basis.

It is the second winning trade in the name to be posted on Market Rebellion in the past month.

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 is currently trading for $911.11, up 6.14% in afternoon trading. The electric car maker’s price target was raised to $928 from $729 by Piper Sandler this morning.