Bulls binge on profits in $DIS

Option traders watching for upside in Walt Disney (DIS) certainly got it, in calls that expire at the end of this week.

On Jul. 25, Investitute’s market scanners identified the purchase of 8,500 Weekly $145 calls expiring on 02August, from $0.60 to $0.79 with shares at $141.53. These were clearly new positions, as open interest in the contract was only 2,240 before that session began.

Those calls sold for $2.90 this morning, more than 4 times their average purchase price. The stock rose 3.93% at the same time, underscoring how options can far outperform their underlying shares.

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.

DIS is up 1.35% currently trading at $146.60 today. The media and entertainment empire made a new all-time high of $147.15 earlier in the session, and is expected to report earnings on August 6 after the closing bell.