Calls quintuple overnight in $SEAS

Option traders racked up big profits in SeaWorld Entertainment today only 24 hours after opening bullish positions in the name.

Just yesterday, Investitute’s market scanners identified the purchase of 6,000 May $17 calls for $0.30 to $0.45 with shares at $16.02. These were clearly new positions, as open interest in the strike was only 430 contracts before that activity appeared.

Those calls traded for $1.70 today, more than 5 times their initial purchase price. The stock rose 15.42% at the same time, showing how quickly options can far outpace gains in 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.

SEAS jumped 7.19% to $16.99 today. The amusement-park operator topped estimates on the top and bottom lines before the market opened this morning.