Bulls’ wagers win in $DKNG

Bullish option traders are scoring big gains on upside wagers in DraftKings (DKNG).

Back on Jul. 16, Market Rebellion’s Unusual Activity Scanners showed that 7,250 September $35 calls were bought for $5.10 to $5.60 against open interest of zero with shares of $33.93.

Those calls have traded for as much as $18.00 today, more than 3 times their purchase prices. The stock rose 56.17% in the same time frame, illustrating how quickly options can far outperform their underlying shares.

It is the fourth winning trade in the name posted on Market Rebellion this month.

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.

DKNG was last up on the session up 7.99% to $52.06. The sports betting company announced today an exclusive sports betting deal with the New York Giants.