$BMY call prices double

Bullish option traders are logging big gains in Bristol-Myers Squibb (BMY) today for the fourth time in the just over the last month.

On Dec. 26, our Unusual Activity Service found that 6,000 January $62 calls were bought for $2.23 to $2.39 with open interest of just 6 contracts before the trade occurred, and shares at $64.00.

Market Rebellion co-founder Pete Najarian chose BMY as his final trade the following day on CNBC’s “Halftime Report.”

Those calls have traded for as much as $5.13 thus far today, more than 2 times their purchase prices. The stock rose 4.88% in the same time period, underscoring how options can far outperform their underlying shares.

It is the fourth winning trade in the name posted on Market Rebellion since Dec. 5.

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.

BMY is up 0.45% to $67.08 this morning, just off a new 52-Week high of $67.21 made earlier in the session by the drug maker.