Bulls score large profits in $DIS

Option traders doubled their money on upside positions in Walt Disney that expired this afternoon.

On July 11, Investitute’s market scanners identified the purchase of 2,000 October $115 calls for $1.80 to $1.94. The trade was part of a bullish spread that was opened with shares at $107.41.

Those calls sold for $4.15 just before the closing bell today, more than twice their purchase prices. The stock rose 10.91% at the same time, 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.

DIS was up 2.34% to close at $118.90 today. Barclays upgraded the media and entertainment empire to “overweight” from “equal weight” this morning and raised its price target to $130 from $105.