Bulls score playing $SNE

Bullish option traders doubled their money in upside positions on Sony (SNE) today.

On Jun. 1, Market Rebellion’s Unusual Activiy Scanners found that 2,500 June $68 calls were bought for $0.92 to $1.07 with shares at $65.22. Open interest in the strike was just 611 contracts before that session began, showing that these were new positions.

Those calls sold for as much as $2.60 today, well over twice their purchase prices. The stock rose 7.84% at the same time, underscoring how options can far outperform moves in 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.

SNE popped higher this morning but traded lower throughout the session to close at $69.35, down 0.5%. The Japanese electronics giant unveiled last Thursday its new PlayStation 5 console.