Bulls double money in $INTC

Option traders have scored large gains in Intel ahead of quarterly results this afternoon.

On April 12, Investitute’s tracking systems found that 11,600 Weekly $58 calls expiring on May 10 were purchased for $0.90 to $1 with shares at $56.29. This was clearly fresh buying, as open interest in the strike was only 270 contracts before that session began

Those calls traded for as much as $1.81 today, twice their initial purchase price. The stock rose 3.93% in the same time frame, showing how quickly options can far outpace gains in their underlying shares.

It is the second winning trade in the name posted on Investitute in the last week.

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.

INTC was last down 1.81% to $57.67 in afternoon trading. The chip giant will report earnings after the closing bell today.