$ADSK calls skyrocket sixfold

A one-week trade in Autodesk paid huge returns on upside option positions that expired this afternoon.

On Aug. 20, Investitute’s tracking systems found that 4,800 Weekly $134 calls expiring today were purchased for $3.90 to $5.10 with shares at $133.05. These were clearly new positions, as open interest in the strike was a mere 96 contracts before that session began.

Investitute co-founder Jon Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded up to $23.68 this morning, 6 times their initial purchase price. The stock surged 18.53%, showing 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.

ADSK spiked higher by 15.33% to close at $157.20, just off an all-time high of $157.78 reached earlier in the session. The construction and engineering design software company topped earnings and revenue expectations after the market closed yesterday.