$BBY option bulls double money

Option traders posted big gains in Best Buy (BBY) today on upside positions.

On Aug. 24, Market Rebellion’s Unusual Activity Service found that 4,129 November $125 calls were bought for $5.15 as part of a bullish spread above open interest of just 7 contracts with shares at $121.02.

Those calls traded for as much as $11.70 today, more than 2 times their purchase price. The stock rose 12.77% at the same time, showing how quickly options can far outpace gains in their underlying shares.

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.

BBY was up 2.05% to close the session at $135.63.