$JD bulls triple their money

Patient traders collected large profits today on upside positions opened in JD.com just before Thanksgiving last year.

Back on Nov. 20, Investitute’s proprietary programs flagged the purchase of 10,000 June $29 calls for $0.79 and $0.80. It was the second consecutive session of buying at that strike.

Those calls sold for as much as $2.51 today, more than 3 times their purchase prices. The stock soared 44.2% inthe same time period, a huge move but still nowhere near 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.

JD jumped 6.7% to $27.71 today. The Chinese e-commerce company topped revenue expectations before the market opened this morning.