Bulls stream big profits with $DIS

It took just over a month for option traders to turn magical gains on upside positions in Disney (DIS).

On Oct. 29, our Unusual Activity scanners found that 14,000 December $120 calls were bought for $6.20 to $7.25 above open interest of 3,474 contracts as part of a bullish roll with shares at $118.00.

Market Rebellion co-founder Pete Najarian cited the unusual option activity on CNBC’s “Halftime Report” that day.

Those calls traded for as much as $32.36 today, more than 4 times their purchase prices. The stock rose 28.98% in the same time frame, showing how quickly options can far outperform their underling 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.

DIS was last up 2.85% at $153.70 today. The entertainment giant’s shares have made new highs this session after Citi raised its price target to $175 from $150 this morning.