Bullish bets pay off in $CZR

It took less than three sessions for option traders to double their money in Caesars Entertainment.

On April 10, Investitute’s proprietary programs found that 10,300 Weekly $9.50 calls expiring on May 24 were bought for $0.45 to $0.47 with shares at $8.97. This was clearly fresh buying, as open interest in the strike was a mere 14 contracts before the activity appeared.

Those calls traded for as much as $0.90 today, twice their initial purchase price. The stock rose 5.35% 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 Investitute in the last 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.

CZR was up 0.74% to $9.47 today. The casino operator rallied this week amid news reports that an acquisition deal may be near.