Bulls double money intraday in $DIS

It took just one session for option traders to turn magical gains on upside positions in Disney (DIS).

Today, Jul. 12, Market Rebellion’s Unusual Activity Service detected the purchase of 5,500 Weekly $185 calls, expiring next Friday, for $1.38 to $2.60 with shares at $181.61. Open interest in the strike before the trade occurred was just 1,553 contracts, showing that this was a new position.

Those calls traded for as much as $3.15 this afternoon, more than 2 times their purchase prices. The stock rose 1.8% in the same time frame, showing how quickly options can far outperform their underling 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.

DIS was up by 4.15% to close at $184.38 today.