$AAPL bulls double money overnight

Option traders are logging big profits on upside positions opened in Apple (AAPL) only one session earlier.

Just yesterday, Market Rebellion’s Unusual Activity Service detected the purchase of 6,800 February $317.50 calls for $2.70 to $4.20 with shares at $318.31. This was clearly fresh buying, as open interest in the strike was only 3,148 contracts before the activity appeared.

Those calls have traded for as much as $7.64 so far today, more than twice their average purchase price. The stock rose 2.02% at the same time, underscoring how quickly options can far outperform 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.

AAPL is up 1.63% to $324.19 this morning. The iPhone maker’s shares rebounded after initially pulled back on weekend reports that the company would lower guidance because of the coronavirus has hampered production.