Calls hit jackpot in $WYNN

Bullish option traders have doubled their money in Wynn Resorts (WYNN).

On Oct. 7, our tracking systems detected the purchase of 7,000 March $105 calls for $12.20 above open interest of 33 contracts with shares at $105.32. Market Rebellion co-founder Jon Najarian updated the trade on CNBC’s “Halftime Report” today.

Those calls are marked at $25.10 today, twice their purchase price. The stock rose 20.46% in the same time period, underscoring 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.

WYNN is up 3.49% to 126.84 in midday trading. The casino operator reported earnings after the market closed yesterday.