Bulls keep making gains with $FIS

Option traders are again logging large gains on upside positions in Fidelity National Information Services (FIS), after quarterly results.

On Jan. 9, our Unusual Activity tracking systems detected the purchase of 2,800 April $145 calls for $5.20 to $5.35 above open interest of 242 contracts with shares at $142.50. Market Rebellion co-founder Jon Najarian cited the unusual activity at that time while making FIS his Final Trade on CNBC’s “Halftime Report.”

Those calls have traded for as much as $14.09 today, nearly triple their purchase prices. The stock rose 10.66% in the same time frame, illustrating the kind of leverage that can be achieved with options.

It is the second winning trade in the name to be posted on Market Rebellion in the past month.

Long calls lock in the price where a stock can be purchased, gaining with a rally and providing leverage to the underlying shares. The contracts can quickly lose value if the stock stalls or pulls back but also carry less risk than owning the shares themselves.

FIS is up 1.76% to $157.00 in mid-afternoon trading. The financial-services firm reported earnings yesterday morning, beating estimates.