Bulls triple money in $DOCU

Option traders are printing huge profits on upside positions in DocuSign (DOCU).

On June 14, Market Rebellion’s market scanners identified the purchase of 4,000 September $50 calls for $4.20 and $4.30 with shares at $49.03. This was clearly fresh buying, as open interest in the strike was only 751 contracts before that session began.

Those calls traded for as much as $14.70 today, about 3.5 times their average purchase price. The stock rose 30.61% in the same time period, a large move but nowhere near that of its options on a relative basis.

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.

DOCU reached a 52-week high of $64.18 early today before pulling back with the broader market to $62.99 in midday trading, still up 0.48% on the session. The digital-signature company gapped higher after announcing strong quarterly results and guidance on Sept. 5.