Bulls keep riding with $LYFT

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

Just yesterday on Aug. 19, Market Rebellion’s Unusual Activity scanners showed that 6,000 August $28.50 calls expiring tomorrow, Aug. 21, were bought for $0.46 to $0.55 as part of a bullish roll with shares at $28.48. This was clearly a new position, as open interest in the strike was only 946 contracts before that session began.

Those calls traded for as much as $2.70 today, more than 5 times their average purchase price. The stock rose 7.83% in the same time frame, showing how options can far outperform their underlying shares.

It marks the third winning trade in the name to be posted on Market Rebellion this month.

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 5.76% at $29.76 today. The ride-sharing service rallied along with its peer Uber (UBER) after the California appeals court delayed their business model change.