$FIS bulls double their money

Bullish bets made on Fidelity National Information Services paid off today as the stock made a new all-time closing high.

On March 20, Investitute’s market scanners identified the purchase of 13,600 18April $105 calls for $2.79, as part of a bullish spread, with shares at $105.50. Open interest in the contract was only 1,005 before that session started, indicating that this was a new position.

Those calls traded for as much as $6.28 today, more than double their purchase price. The stock rose 5.09% in the same time frame, a large move but nothing like that of its options on a relative basis.

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.

FIS made an impressive move higher today in a choppy market, closing up by 1.12% at $111.18. The international financial services provider has received positive commentary from multiple analysts after it announced its acquisition of Worldpay (WP) on Mar. 18.