$LLNW call prices triple in days

Option traders turned quick gains in Limelight Networks today ahead of its earnings report tomorrow afternoon.

On Monday, Investitute’s proprietary programs flagged the purchase of 6,250 April $4 calls in one print for $0.15 with shares at $3.85. This was clearly a new position, as open interest in the strike was only 194 contracts before the trade occurred.

Those calls rose to $0.50 this afternoon, more than tripling in price just two sessions later. The stock 11.9% at the same time, illustrating the kind of leverage that can be achieve 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.

LLNW jumped 4.43% to $4.24 today. The content-delivery service was initiated with an “outperform” rating Monday night at Oppenheimer with a $6 price target. First-quarter results are scheduled for release tomorrow after the market closes.