Bulls book a ride with $LYFT

Option traders are already doubling their money in Lyft (LYFT) today ahead of the company’s quarterly results tomorrow afternoon.

On Feb. 4, Market Rebellion’s Unusual Activity scanners showed that 4,100 Weekly $50 calls expiring this Friday, Feb. 14, were bought for $1.91 to $2.71 with shares at $49.97. This was clearly a new position, as open interest in the strike was only 908 contracts before that session began.

Those calls traded for as much as $4.98 today, more than twice their average purchase price. The stock rose 7.74% in the same time frame, showing 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.

LYFT is up 6.59% last at $53.21 in afternoon trade. The ride-sharing service is expected to report quarterly earnings results tomorrow after the market closes.