Game on for $SNE bulls

Bullish option traders have about doubled their money in upside positions on Sony (SNE) today.

On Oct. 20, Market Rebellion’s Unusual Activiy Scanners found that 5,000 January $77.50 calls were bought for $3.85 as part of a complex bullish spread with shares at $75.63. Open interest in the strike was just 1,896 contracts before that session began, showing that these were new positions.

Those calls sold for as much as $7.30 today, nearly twice their purchase price. The stock rose 8.21% at the same time, underscoring how options can far outperform moves in 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.

SNE popped higher today, last trading at $81.68, up 5.43%. The Japanese electronics giant beat earnings expectations for the first half in its earnings report before the opening bell today.