Bulls double money in $NFLX

Option traders have racked up big profits on upside positions opened in Netflix just last week.

On April 15, Investitute’s proprietary programs identified the purchase of 2,700 May $355 calls for $14.90 as part of a bullish roll with shares at $346.83. Open interest in the strike was only 953 contracts before the trade occurred, showing that this was a new position.

Those calls traded for as much as $28.65 today, almost twice their purchase price. The stock rose 9.5% in the same time frame, underscoring how quickly 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.

NFLX reached a session high of $381.90 this morning but pulled back to close at $374.23, down 2.01% on the day. Shares of the video-streaming giant initially fell after quarterly results on April 16 but quickly rebounded back to their highest levels since last October.