$AMZN bulls score same-day gains

Option traders posted fast profits today as Amazon.com (AMZN) reaches new highs.

Just 15 minutes into the session today, Jul. 6, Market Rebellion’s Unusual Activity Service detected the purchase of 10,000 Weekly $3600 calls, expiring this Friday, for $10.50 to $39.00 with shares at $3,530.17. Open interest in the strike before the trade occurred was just 5,524 contracts, showing that this was a new position.

Those calls have sold for as much as $101.00 so far today, more than 2.5 times their purchase prices. The stock rose 4.31% in the same time frame, showing how options can far outperform moves in their underlying shares.

This marks the second winning trade in the name posted on Market Rebellion in recent weeks.

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.

AMZN was last higher by 4.88%, trading at $3,682.27 in late-day trade.