Bulls double money with $LYFT

Option traders booked a fast ride to profits in Lyft (LYFT) today.

Just yesterday on Aug. 18, Market Rebellion’s Unusual Activity scanners showed that 6,000 August $28 calls expiring this Friday, Aug. 21, were bought for $0.41 to $0.48 as part of a complex bullish spread with shares at $27.45. This was clearly a new position, as open interest in the strike was only 1,596 contracts before that session began.

Those calls traded for as much as $0.98 today, more than double their purchase prices. The stock rose 4.52% in the same time frame, 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.

LYFT closed up 0.72% at $28.14 today after trading as high as $28.70. The ride-sharing service beat on revenues during its earnings report on Aug. 12 and is reportedly discussing a franchise-like business model in California, along with Uber (UBER).