$FB bulls quadruple money

Upside option positions opened in Facebook at the beginning of the week have already produced huge profits.

On April 22, Investitute’s market scanners found that 2,700 Weekly $190 calls expiring on May 10 were bought for $2.38 to $2.76 with shares at $180.55. This was clearly fresh buying, as open interest in the strike was only 608 contracts before that session began.

Those calls traded for as much as $9.60 today, 4 times their initial purchase price. The stock rose 9.81% in the same time frame, showing how quickly options can far outperform their underlying 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.

It is the third winning trade in the name posted on Investitute in as many weeks.

FB jumped 5.85% to $193.26 today. The social network rallied after reporting strong earnings and traffic numbers after the market closed yesterday.