Bulls score huge profits in $NVDA

Bullish option traders are already scoring huge profits on upside positions in Nvidia (NVDA) today.

On Nov. 14, Market Rebellion’s Unusual Activity Service detected the purchase of 3,000 June $250 calls for $10.24 to $10.57 with shares at $208.43.

Those calls have so far traded for as much as $37.79 today, more than triple their purchase prices. The stock rallied 30.69% in the same time period, a large move but nowhere near that of its options on a relative basis.

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.

NVDA is up 1.48% to $266.75 currently. The graphics-chip maker’s price target was raised to $300 from $250 by Oppenheimer this morning ahead of its earnings report scheduled for Thursday, Feb. 13 after the closing bell.