Calls turn quick profits in $SYMC

It took just one week for bullish option traders to double their money in Symantec.

On Aug. 9, Investitute’s tracking systems flagged the purchase of 3,700 October $20 calls for $0.64 to $0.72 with shares at $19.55. This was clearly fresh buying, as volume was well above the strike’s open interest of 2,416 contracts. Investitute co-founder Pete Najarian cited the unusual activity at that time on CNBC’s “Halftime Report.”

Those calls traded up to $1.12 today, nearly twice their initial purchase price. The stock rose 4.35% in the same time frame, underscoring how 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.

SYMC jumped 4.64% to $19.41 today. Shares rallied this morning after activist firm Starboard said it had take a 5.8% stake in the cybersecurity company.