Bulls double money in $FIS

Option traders are logging large gains on upside positions in Fidelity National Information Services (FIS) ahead of quarterly results next week.

On Oct. 23, our tracking systems detected the purchase of 9,200 November $125 calls for $4.85 above open interest of 185 contracts with shares at $126.14. Market Rebellion co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report” and updated the position just now.

Those calls have traded for as much as $9.35 so far today, about twice their purchase price. The stock rose 5.76% in the same time frame, illustrating the kind of leverage that can be achieved with options.

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.

FIS is up 1.01% to $133.09 in midday trading. The financial-services firm is scheduled to report earnings before the market opens on Nov. 5.