Bulls triple money in $KHC

It has taken less than two weeks for option traders to score large gains on upside positions in Kraft Heinz (KHC).

On Oct. 22, Market Rebellion’s activity scanners showed that 6,500 Weekly $29 calls expiring on Nov. 8 were bought for $0.90 to $0.95 with shares of $28.30. This was clearly fresh buying, as open interest in the strike was only 151 contracts before the activity appeared.

Those calls have traded for as much as $3.30 so far today, more than 3.5 times their average purchase price. The stock rose 14.52% in the same time frame, illustrating how quickly 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.

KHC is up 12.95% to $32.19 in early afternoon trading. The food company’s earnings topped expectations this morning.