$DIS bulls score again

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

On Aug. 4, our Unusual Activity scanners found that 2,200 Weekly $125 calls expiring this Friday, Aug. 14, were bought for $0.82 to $0.88 above open interest of 794 contracts with shares at $116.77.

Those calls have traded for as much as $7.98 so far today, more than 9 times their purchase prices. The stock rose 13.83% in the same time frame, showing how quickly options can far outperform their underling shares.

It is the second winning trade in the name to be posted on Market Rebellion since the company’s earnings report.

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 0.87% at $131.71 today. The entertainment giant’s shares have continued to trade higher after its earnings report last week where it noted strong Disney+ subscriptions.