Bulls chip an intraday double in $WDC

Option traders posted large gains on upside positions in Western Digital Corporation as shares continued their post-earnings rally.

Just this morning, Investitute’s proprietary programs flagged the purchase of 2,200 22February 47.50 calls in one print for $0.85 with shares at $45.14. This was clearly fresh buying, as open interest in the strike was only 42 contracts before that session began.

Those calls traded for as much as $1.76 this afternoon, more than twice their purchase price. The stock rose 4.72% in the same time frame, a large gain but nowhere near that of its options on a relative basis.

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.

WDC jumped 4.47% to close at $47.00 even today. The computer storage specialist’s shares have appreciated since it reported better than expected earnings on Jan. 24.