$ATVI calls rocket sixfold

Bullish option traders scored huge profits today on multiple bets made on Activision Blizzard (ATVI) recently.

In two sessions over three days last week, our tracking systems found bullish activity in the same strike. Those contracts expire Friday afternoon:

–On Aug. 27: 4,559 06September $52 calls were bought for $0.90 with shares at $50.92.
–On Aug. 29: 8,700 06September $52 calls were bought for $0.60 to $0.73 with shares at $51.14.

Those calls traded for as much as $4.50 today, 6 times their average purchase price. The stock rose 11.06% in the same time frame, underscoring how quickly options can far outperform their underlying shares.

It is the second winning trade in the name posted on Unusual Option Activity in barely a 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.

ATVI spiked to $56.44 in early trading but pulled back to $54.38 this afternoon, still up 1.68% on the session. Stephens upgraded the game developer to “overweight” from “equal weight” this morning and raised its price target to $65 from $52.