A banner day for $CERN call buyers

Option traders are turning huge profits in Cerner (CERN) today.

On Dec. 7, Market Rebellion’s Unusual Activity scanners identified the purchase of 2,000 December $75 calls, expiring today, for $0.75 to $1.00 with shares at $73.67. This was clearly a new position, as volume was clearly above the strike’s previous open interest of 1,882 contracts.

Those calls have traded for $16.27 today, more than 16 times their purchase prices. The stock rose 23.1% at the same time, underscoring how quickly options can far outperform their underlying shares.

Long calls lock in the price where the stock can be purchased, gaining with a rally and providing leverage to the underlying shares. But the contracts can quickly lose value if the stock stalls or pulls back.

CERN has surged this session, last up 13.62% at $90.32 in early trade.