Another winning trade in $TLT

Option traders more than doubled their money on upside positions in the iShares 20+ Year Treasury Fund (TLT) for the second time this week.

On May 28, Investitute’s tracking systems detected the purchase of 10,000 August $133 calls in two prints for $0.88 and $0.89 with shares at $128.67. This was clearly above open interest of 9 contracts. Stock 128.67.

Those calls traded for as much as $2.13 just minutes before today’s closing bell, more than twice their purchase prices. The stock rose 2.46% in the same time frame, illustrating the kind of leverage that can be achieved quickly with options.

It is the second winning trade in the ETF to be posted on Investitute this week.

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.

TLT was up 1.25% to $131.83 today. The exchange-traded fund has risen sharply as investors have piled into bonds for a so-called safe-haven trade while equities have fallen.