Bulls quadruple their money in $AMD overnight

Bullish option traders quadrupled their money in Advanced Micro Devices (AMD) calls as shares continued to rocket higher today.

Just yesterday on Apr. 13, Market Rebellion’s Unusual Activity Service detected the purchase of 12,000 April $51 calls, expiring this Friday, Apr. 9, for $0.50 to $1.16 with shares at $48.46. Volume was certainly above the strike’s previous open interest of 6,619 contracts, showing that this was a new positions.

Those calls traded up to $4.30 this afternoon, at least about 4 times their purchase price. The stock rose 13.39% 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 by Market Rebellion in as many weeks.

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.

AMD ended the day up by 7.83% to $54.93. The semiconductor developer will host its annual shareholder meeting on May 7 at 9:00 AM PDT.