Bulls double money in $STAA

Option traders are racking up large gains on upside positions in STAAR Surgical (STAA) today.

On Sept. 11, Market Rebellion’s activity scanners identified the purchase of 2,595 December $29 calls for $2.58 as part of a bullish roll with shares at $27.66. This was clearly a new position, as open interest in the strike was only 416 contracts before that session began.

Those calls are marked at $5.85 today, more than twice their purchase price. The stock rose 23.83% in the same time period, underscoring how options ca 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.

STAA is up 3.13% to $34.32 in midday trading today. The eye-lens implant company topped earnings and revenue estimates on Oct. 30.