$AAPL option bulls keep scoring at highs

Option traders are scoring big profits on upside positions opened in Apple (AAPL) toward the start of last month.

On Jun. 3, Market Rebellion’s Unusual Activity Service found that 30,000 Weekly $120 calls, expiring next Friday, were bought for $6.67 to $6.92 as part of a bullish spread against no open interest with shares at $123.89.

Those calls traded for as much as $29.35 today, over 5.5 times their purchase prices. The stock rose 20.52% at the same time, underscoring how quickly options can far outperform their underlying shares.

This marks the second winning trade in the name to be posted by Market Rebellion in the past week.

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 was up by 2.41% to $149.15 at the close of today’s trade, setting a new high of $149.57 earlier. The company is next scheduled to report earnings on Jul. 27 after the close.