Bulls triple money in $SNE

Option traders have scored big in Sony’s run to its highest level in 17 years.

On March 7, Investitute’s tracking systems detected the purchase of 4,000 June $47.50 calls for $2.30 as part of a bullish spread with shares at $46.43. Volume was well above the strike’s open interest of 305 contracts, indicating that this was a new position.

Those calls traded for $5.41 today, more than twice their purchase price. The stock rose 10.37% in the same time period, showing how 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.

SNE was up 1.54% to $52.25 today. Shares have surged since the electronics conglomerate raised its outlook on April 26.