$AAPL option bulls double money

Option traders are picking big profits on upside positions opened in Apple (AAPL)two Fridays ago.

On Jun. 4, Market Rebellion’s Unusual Activity Service found that 14,500 June $129 calls, expiring this Friday, were bought for $0.71 to $0.91 above open interest of just 5,492 contracts with shares at $124.59.

Those calls have traded for as much as $2.08 thus far today, over 2 times their purchase prices. The stock rose 4.66% at the same time, underscoring how quickly options can far outperform their underlying shares.

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.

AAPL was last up by 2.10% to $130.02 in afternoon trade. The company is next estimated to report earnings on Jul. 29 after the close.