$DLTR option bulls shop for big gains

Bullish option traders are ringing up big gains in Dollar Tree (DLTR) today.

On Nov. 3, Market Rebellion’s Unusual Activity Service found that 3,500 November $115 calls, expiring this Friday, were bought for $1.80 to $3.50 above the existing open interest of 2,919 contracts with shares at $111.74.

Those calls traded for as much as $17.16 this session, more than 4.5 times their purchase prices. The stock rose 18.24% in the same time period, 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.

DLTR was last trading at at $132.72, up 2.7% on the session.