Bulls score in $APO

Option traders have turned large profits on bullish positions opened in Apollo Global Management (APO) earlier last month.

On Oct. 9, Market Rebellion’s Unusual Activity Service found that 4,800 December $145 calls were bought for $4.65 to $4.94 above the existing open interest of 2,125 contracts with shares at $137.42.

Those calls have sold for as much as $20.57 today, a 316.4% return, while the stock rose 18.86% in the same time period, underscoring how options can far outperform their underlying shares.

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.

APO is currently trading for $163.59 this morning, up 9.59%.