Bulls $SNAP up more profits

Bullish option traders are cashing in more exponential profits on Snap (SNAP) calls today.

On Oct. 19, Market Rebellion’s Unusual Activity Scanners found that 7,500 Weekly $28.50 calls, expiring today, were bought for $2.05 as part of a bullish spread with shares at $28.84. This was clearly fresh buying, as open interest in the strike was only 1,616 contracts before that session began.

Market Rebellion co-founder Jon Najarian noted the activity that day on CNBC’s Halftime Report.

Those calls have traded for as much as $14.19 so far today, about 7 times their purchase prices. The stock rose 47.95% in the same time frame, a large move but nowhere near that of its options on a relative basis.

It is the second winning trade in the name posted by Market Rebellion this week.

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.

SNAP is making fresh highs this session, last up 9.08% to $42.51. The social media company topped estimates on its top and bottom lines during its earnings announcement Tuesday.