$AMTD calls score again

Bullish option traders are collecting significant profits in TD Ameritrade (AMTD) today for the second session in a row.

On Oct. 7, Market Rebellion’s activity scanners found that 9,500 Weekly $38 calls expiring on Oct. 25 were bought for $0.30 to $0.40 with shares at $34.07. This was clearly fresh buying, as open interest in the strike was 2,697 contracts before that session began.

Those calls have traded for as much as much as $0.75 today, more than twice their average purchase price. The stock rose 12.97% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the second winning trade in the name posted on Market Rebellion in as many days.

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.

AMTD is up 1.02% to $38.54 this morning. The online brokerage beat earnings and revenue estimates after the market closed on Oct. 21.