Bulls double money in $AMD

Option traders turned quick profits on Advanced Micro Devices (AMD) today for the second time in less than a week.

On May 30, Investitute’s proprietary programs found that 8,500 Weekly $29 calls expiring on June 14 were bought for $0.82 to $0.94 above open interest of 1,946 contracts with shares at $28.32. Investitute co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded for as much as $1.59 today, about twice their initial purchase price. The stock rose 4.36% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

It is the second winning trade in the name posted on Investitute in the last three sessions. Najarian updated the latest position on CNBC today.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

AMD was up 0.62% to $27.58 today. The semiconductor maker rallied sharply last week after announcing new chip releases and graphics cards that could take market share from Intel (INTC) and other rivals.