Bulls double money in $DELL

Option traders have doubled their money on bullish positions in Dell Technologies (DELL).

On June 18, Investitute’s proprietary programs flagged the purchase of 2,250 July $50 calls for $3.40 to $3.50 with sharest at $51.77. This was clearly fresh buying, as open interest in the strike was only 1,261 contracts before that session began.

Those calls sold for as much as $6.80 today, twice their initial purchase price. The stock rose 9.74% today, 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.

DELL is up 1.83% to $56.23 in late-morning trading. William Blair released a positive note on Dell’s space in the computer industry on July 11.