$TSLA bulls keep turning gains

Shares of Tesla (TSLA) have been rocketing higher, delivering significant gains to upside option positions opened at the end of last year.

On Dec. 13, Market Rebellion’s Unusual Activity scanners showed that 7,000 March $300 calls were purchased for $60.80 to $71.35 as part of a bullish spread and roll with shares at $357.85. This was clearly a new position, as open interest in that contract was just 2,374 before the trade occurred.

Those calls have thus far traded for as much as $350.00 today, or over 5 times their average purchase price. The stock surged 81.13% 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 this 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 $645.48, up 11.10% on the session. The electric car maker reported quarterly earnings results after the closing bell yesterday, beating analyst expectations.