Bulls stream fast profits with $DIS

It took under 24 hours for option traders to turn magical gains on upside positions in Disney (DIS).

On Aug. 26, our Unusual Activity scanners found that 8,000 Weekly $133 calls expiring tomorrow, Aug. 28, were bought for $0.52 to $0.97 above open interest of 2,132 contracts with shares at $131.26.

Those calls traded for as much as $3.40 today, more than 3 times their purchase prices. The stock rose 3.74% in the same time frame, showing how quickly options can far outperform their underling shares.

It is the third winning trade in the name to be posted on Market Rebellion since the company’s earnings report.

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 last up 1.18% at $133.73 today. The entertainment giant’s shares have continued to trade higher and Deutsche Bank this morning noted that attendance at Disney World had improved throughout the week.