Bulls score again in $NTNX

Option traders have more than doubled their money in Nutanix (NTNX) today for the second session in a row.

On Nov. 14, Market Rebellion’s Unusual Activity Service found that 2,500 Weekly $25 calls expiring this Friday were bought for $3.60 with shares at $27.44. This was clearly a new position, as open interest in the strike was a mere 9 contracts before that session began.

Those calls have traded for as much as $9.85 so far today, more than 2.5 times their purchase price. The stock rose 26.75% in the same time frame, a large move but still far below that of its options on a relative basis.

It is the second winning trade in the name posted on Market Rebellion in as many days.

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.

NTNX is up 4.75% to $35.06 this morning. The business-cloud technology company topped quarterly expectations after the market closed yesterday.