Bulls get a lift from $LYFT

Option traders scored big profits in Lyft (LYFT) today.

On Feb. 11, Market Rebellion’s Unusual Activity scanners showed that 7,080 March $55 calls were bought as part of a bullish roll for $4.60 with shares at $56.12. This was clearly a new position, as open interest in the strike was only 1,494 contracts before that session began.

Those calls have traded for as much as $12.25 today, more than 2.5 times their purchase prices. The stock rose 19.76% 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 was last higher by 1.96% at $67.67.