$TSLA bulls add gains

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

On Nov. 24, Market Rebellion’s Unusual Activity scanners showed that 5,825 Weekly $520 calls expiring on Dec. 31 were purchased for $68.40 in one print with shares at $552.30. These were clearly new positions, as the open interest in that contract before the trade occurred was just 408.

Those calls have traded for $148.00 today, over 2 times their purchase price. The stock surged 19.82% in the same time period, a huge move but still nowhere near that of its options on a relative basis.

This marks the second winning trade posted on Market Rebellion in the names in the past 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 was last higher on the day by 0.7% at $660.50. The electric car maker is set to be included in the S&P 500 Index after the close today.