Bulls double down with $DKNG

It took less than one week for option traders to score big gains on upside positions in DraftKings (DKNG).

Last Wednesday, Sep. 9, Market Rebellion’s Unusual Activity Scanners showed that 11,000 September $41.50 calls were bought for $1.49 to $1.92 above the open interest of 5,491 contracts with shares of $39.00.

Those calls have traded for as much as $5.70 today, more than 3 times their average purchase price. The stock rose 19.79% in the same time frame, illustrating how quickly options can far outperform their underlying shares.

It is the third winning trade in the name posted on Market Rebellion this month.

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.

DKNG was last up on the session up 12.01% to $46.44. The sports betting company announced today that it entered into co-exclusive agreements Disney’s (DIS) ESPN and Caesar’s (CZR).