Bulls double money in $QCOM

It took just three sessions for option traders to turn large profits on upside positions in Qualcomm (QCOM).

On Nov. 4, Market Rebellion’s activity scanners identified the purchase of 2,788 November $84 calls for $3.27 to $3.30 as part of a bullish roll with sharest at $85.24. This was clearly fresh buying, as open interest in the strike was only 620 contracts before the activity appeared.

Those calls have traded for as much as $8.20 so far today, 2.5 times their average purchase price. The stock rose 7.97% in the same time frame, illustrating the kind of leverage that can be achieved quickly 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.

QCOM is up 8.64% to $91.94 in early trade today. The chip maker topped quarterly results and issued a positive outlook after the market closed yesterday.