$TSLA option bulls triple money intraday

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

Just this morning, Market Rebellion’s Unusual Activity Scanners showed that 4,500 March $685 calls were bought for $9.00 to $12.45 above open interest of 500 contracts with shares of $600.97.

Those calls have traded up to $36.14 today, roughly 3 times their purchase prices. The stock surged by 12.7% in the same time period, a large move but nowhere near that of its options on a relative basis.

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 was last higher on the day by 19.52% at $672.87. New Street upgraded shares to Buy from Neutral this morning.