$CPB bulls triple money intraday

Option traders have racked up quick, exponential gains in Campbell Soup (CPB).

Less than two hours ago, Market Rebellion’s Unusual Activity programs flagged the the purchase of 2,500 Weekly $48.50 calls, expiring this Friday, May 7, for $0.15 with shares at $47.97. Volume was clearly above the previous open interest of 85 contracts, indicating that this was a new position.

Those calls have just traded for $0.43, nearly 3 times their purchase price. The stock rose 1.15% in the same time period, a large move for the time frame but nowhere near that of its options.

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.

CPB was last up 1.02% today at $48.71.